A double percolation transition is identi…ed in a binary network composed of nanoparticles of MgB 2 superconductor and CrO 2 half-metallic ferromagnet. Anomalously high-resistance or insulating state, as compared to the conducting or superconducting states in single-component systems of either constituent, is observed between two distinct percolation thresholds. This double percolation e¤ect, which is especially pronounced at liquid helium temperatures, is controlled by composite volume fraction and originates from the suppressed interface conduction and tunneling between nanoparticles of di¤erent species. We investigate the scaling behavior near both percolation thresholds, and determine the distinct critical exponents associated with two di¤erent types of transitions.