Aqueous chemical oxidative polymerization of pyrrole using PdCl2, oxidant was conducted in the presence of cetyltrimethylammonium bromide in order to synthesize polypyrrole-palladium (PPy-Pd) nanocomposite in one step. Interestingly, the PPy-Pd nanocomposite was synthesized with fibrous morphology. Transmission electron microscopy studies confirmed that Pd and PPy components formed composite in nanometer dimensions.