Nanocomposites of conducting polymers (polyaniline (PANI) and polypyrrole (PPy)) with inorganic Na+-montnorillonite (MMT) clay were synthesized using dodecylbenzenesulfonic acid (DBSA) as both a dopant and an emulsifier. These nanocomposites were then adapted as both electrical conducting and electrorheological (ER) materials. The yield stress and current density of these ER fluids were found to increase with electrical field strength. The electrical properties and molecular structure of these nanocomposites were also investigated.