Layered graphite oxide is used as host material for the synthesis of conducting polymer intercalated nanocomposites. Powder X-ray diffraction, Fourier transform infrared, and UV-VIS absorption spectra indicate the formation of polyaniline within the interlamellar spaces of graphite oxide. The red shift of UV-VIS absorption associated with graphite oxide is found. The direct current (dc) conductivity increases by about three orders of magnitude compare with pristine graphite oxide. The temperature dependence dc conductivity of the nanocomposite follows Mott's three-dimensional variable range hopping. The alternating current (ac) conductivity suggests correlated barrier hopping of conduction process. The conductivity relaxation time varies in the range of 10(-5)-10(-7) Sec.