This paper reports structural, thermal, and temperature‐dependent dielectric properties of polyindole–cadmium selenide (PIN–CdSe) nanocomposites. PIN and its nanocomposites were synthesized via in situ chemical oxidative polymerization method. Samples were characterized by Fourier transform infrared spectroscopy (FT‐IR), X‐ray diffraction (XRD), scanning electron microscopy with energy dispersive X‐ray (SEM/EDX), atomic force microscope, differential scanning calorimetry (DSC) and thermogravimetric analysis (TGA). Dielectric properties were analyzed as a function of temperature. FT‐IR spectroscopy indicated that both NH and aromatic CC bonds were affected more by doping process. Significant structural differences were observed in XRD and SEM analyses of PIN and its nanocomposites. Both XRD and DSC measurements revealed that crystallinity of the PIN increases to a certain degree with increasing doping level. Thermogravimetric analysis showed that addition of CdSe decreased degradation temperature of the PIN. Conductivity measurements investigated by universal power law indicated that the charge transport mechanism of all the samples is consistent with correlated barrier hopping model. POLYM. COMPOS., 37:3057–3065, 2016. © 2015 Society of Plastics Engineers