In the present study, we demonstrate the development of novel electromagnetic interference shielding material from the composite of nanostructured polyaniline-polyhydroxy iron-clay and polycarbonate through solution blending process. Onset of percolation threshold has been manifested from the morphological studies in combination with electrical conductivity measurements. Temperature-dependent electrical conduction mechanism was studied by applying Mott theory and was found to follow 3D variable range hopping (VRH) model. The presence of interaction between the host matrix and the nanofiller was studied by rheological property measurement in combination with Fourier transform infrared spectroscopy. Films were further characterized for electromagnetic interference (EMI) shielding efficiency and thermomechanical properties. Results suggest that these transparent composite films can be used for the fabrication of EMI shielding/electrostatic dissipation material for the encapsulation of electronic devices and as electrostatic material for high technological applications. (c) 2012 Wiley Periodicals, Inc. J. Appl. Polym. Sci., 2013