Capacity retention is a critical property to enhance in electrochemical storage systems applied to renewable energy. In lithium-sulfur (Li-S) batteries, the capacity fade resulting from the shuttle effect of polysulfides is a major obstacle to their practical application. Sepiolite, an eco-friendly earth-abundant clay with suitable surface chemistry for anchoring and retaining various molecules and structures, was studied as a cathode additive to mitigate the shuttle effect using experimental and theoretical approaches. Electrochemical measurements, spectroscopy, and ab initio calculations were performed to describe the mechanism and interfaces involved in polysulfide retention using 2 wt% of sepiolite as an additive in Li-S batteries. The results showed that the addition of sepiolite significantly improved the capacity retention during battery cycling. Spectroscopic analysis revealed that the effective sepiolite-polysulfide interface was governed by oxidized sulfur species. Additionally, ab initio studies showed a highly exothermic adsorption both inside and outside the sepiolite pore. This study demonstrates the potential use of eco-friendly, low-cost, non-toxic, natural, and abundant materials as additives to increase capacity retention.