We investigate the clustering and dynamics of nano-sized particles (nano dust) in high-resolution (10243) simulations of compressible isothermal hydrodynamic turbulence. It is well established that large grains will decouple from a turbulent gas flow, while small grains will tend to trace the motion of the gas. We demonstrate that nano-sized grains may cluster in a turbulent flow (fractal small-scale clustering), which increases the local grain density by at least a factor of a few. In combination with the fact that nano-dust grains may be abundant in general, and the increased interaction rate due to turbulent motions, aggregation involving nano dust may have a rather high probability. Small-scale clustering will also affect extinction properties. As an example we present an extinction model based on silicates, graphite, and metallic iron, assuming strong clustering of grain sizes in the nanometre range, could explain the extreme and rapidly varying ultraviolet extinction in the host of GRB 140506A.