Polypyrrole/holmium oxide composites were prepared by in situ polymerization technique with ammonium persulphate as an oxidizer. Polypyrrole and PPy/Ho2O3composites were correlated in varying compositions viz. (10, 20, 30 40 and 50 wt%) of Ho2O3 in polypyrrole. As prepared composites were characterized by FESEM (Field Emission Scanning Electron Microscopy), EDX (Energy Dispersive X-ray Spectroscopy), XRD (X-ray Diffraction), FTIR (Fourier Transform Infrared Spectroscopy), AC conductivity and dielectric behavior of the composites were carried out by using Hioki model, computer confederated LCR meter accompanied by frequency scale ranging from 50 Hz to 1 MHz. Conductivity of the samples was observed to increase with increasing wt %. The change in dielectric constant of the polypyrrole composites with the applied frequency can be explained using Maxwell-Wagner polarization . Dielectric tangent loss curves can be attributed due to Rezlescu model.