Magnetic composites with superparamagnetic properties have attracted great scientific interest recently. In this article we have investigated chitosan-maghemite (γ-Fe 2 O 3 ) nanocomposite. We have analyzed the effect of temperature and the concentration of maghemite nanoparticles upon the relaxation behaviour of the nanocomposite using Broad band dielectric spectroscopy (BDS). Additionally, various characterization techniques such as X-ray diffraction (XRD), Fourier transform infra red spectra (FTIR), Scanning electron microscopy (SEM), Transmission electron spectroscopy (TEM), Thermo gravimetric Analysis (TGA), Vibrating Sample Magnetometer (VSM), Atomic Force Microscopy (AFM) and Raman spectroscopy have been used for our investigation. Our investigation shows that maghemite nanoparticles interact with chitosan leading to morphological changes in the films and results in modifications in the dielectric and electrical characteristics of the nanocomposite. New relaxations have been identified and their modifications due to maghemite nanoparticles have been investigated. The nanocomposites exhibit superparamagnetic behaviour. This research will benefit research in battery technology and super capacitors.