Investigation of the electrical properties of polymer-clay nanocomposites is important in the development of nanoelectronic devices. These nanocomposites may be prepared by intercalating suitable monomers within interlayer spaces of expanding layered clay materials, followed by in situ polymerization. We made use of this approach to prepare montmorillonite-polyaniline nanocomposites by ion-exchanging the intergallery cations for anilinium ions and subsequently polymerizing the anilinium ions by peroxydisulphate in the acidic medium to yield emeraldine salt form of polyaniline intercalated in montmorillonite (ES1-MMT). The emeraldine salt form of polyaniline contains one positive charge per three monomer units, and hence, polymerization of anilinium ions reduces the number of cations present within the interlayer. Charge compensation thus requires uptake of required amount of cations from the solution. Further, the emeraldine salt form of polyaniline can be neutralized by treating with excess base such as ammonia. Thus, the neutralization of emeraldine salt results in an uptake of ammonium ions for charge balance. We have, therefore, neutralized ES1-MMT using aqueous ammonium hydroxide, and the cations inserted into the interlayer were again exchanged for anilinium ions. The latter was polymerized in acidic medium to yield more polyaniline in its emeraldine salt form (ES2-MMT). By repeating this procedure we have also prepared ES3-MMT. X-ray diffraction (XRD) spectra recorded at 150°C reveal the enhancement of d-spacing upon increased amounts of polymer formation, and the Fourier transform infrared (FTIR) analysis also supports this by showing enhanced absorption due to bands typical of emeraldine salt (for example, B-NH + =Q, where B and Q stand for benzanoid and quinoid, respectively). Careful analyses of FTIR spectra reveal that the polymer is present within the interlayers, as well as adsorbed onto the external surfaces and is bound to clay layers through hydrogen bonding. In this publication, we report the electrical properties of such ES-MMT nanocomposites. Alternating current (AC) impedance analysis shows that the nanocomposites are highly conducting materials, and their bulk conductivity enhances in the order ES1-MMT