Electrically conducting biopolymer blend nanocomposites based on different contents of boehmite (BHM) reinforced cashew gum (CG) /polypyrrole (PPy) blend is synthesized by an in situ polymerization technique using water as a green solvent. The resulting bio-blend nanocomposites underwent comprehensive analysis concerning their structural, morphology, thermal, and electrical properties, such as dielectric constant, dielectric loss, electric modulus, and AC conductivity. The Fourier transform infrared spectroscopy (FTIR) spectra revealed the presence of metal oxide stretching in the blended nanocomposite at 512 cm−1. Field emission scanning electron microscopy (FE-SEM) confirmed the attachment and uniform dispersion of BHM within the CG/PPy blend at 7 wt% loading, and beyond this loading, the nanoparticles get agglomerated in the biopolymer blend. The glass transition temperature and thermal stability of all the blended nanocomposites are higher than that of the pure CG/PPy blend and these thermal properties increase with the loading of nanoparticles. Conductivity experiments demonstrated that as the nanofiller content increases up to 7 wt%, there is a concurrent rise observed in AC conductivity, dielectric loss, and dielectric constant. There is a substantial difference of 1.21 Scm−1 between the maximum and minimum AC electrical conductivity, at 102 Hz. However, a decrease in electrical properties is observed at the highest loadings of BHM due to the agglomeration of nanoparticles in the polymer blend matrix. The lowest activation energy value (0.049 × 10−4 eV) is also exhibited by 7 wt% BHM nanocomposites. Furthermore, the electrical properties of both CG/PPy and CG/PPy/BHM nanocomposites exhibited a temperature-dependent behavior, progressively increasing until reaching maximum values. This study suggests that such bio-based polymer dielectrics could be promising materials for various applications, offering enhanced thermal and electrical properties through careful control of nanofiller content and dispersion.