This paper focus on the effect of nanosize (<50 nm BET) inorganic alumina (Al2O3) filler on the structural, conductivity, and thermal properties of chitosan‐based polymer electrolytes. Films of chitosan and its complexes were prepared using solution‐casting technique. Different amounts of Al2O3 viz., 3, 4.5, 6, 7.5, 9, 12, and 15 wt% were added to the highest room temperature conducting sample in the chitosan–salt system, i.e. sample containing 60 wt% chitosan–40 wt% NH4SCN. The conductivity value of the sample is 1.29 × 10−4 S cm−1. On addition of 6 wt% Al2O3 filler the ionic conductivity increased to 5.86 × 10−4 S cm−1. The amide and amino peaks in the spectrum of chitosan at 1636 and 1551 cm−1, respectively, shift to lower wavenumbers on addition of salt. The glass transition temperature Tg for the highest conducting composite is 190°C. The increase in Tg with increase in more than 6 wt% filler content is attributed to the increase in degree of crystallinity as proven from X‐ray diffraction studies. Copyright © 2009 John Wiley & Sons, Ltd.