Behaviour of temperature-sensitive core-shell VCL/AAEM microgels has been studied in binary alcohol/water mixtures. Amount of alcohol in binary mixture influences strongly the swelling and thermo-sensitive properties of microgels. Alcohol induces swelling of VCL-rich microgel shell leading to larger dimensions of microgel particles and larger surface area. Under these conditions pyrrole polymerization was carried out, and the influence of pyrrole concentration, oxidant nature and temperature on morphology and properties of composite particles was investigated. Contrary to the polymerization in water medium, this selective swelling method gives possibility to increase three times loaded polypyrrole amount and maintain the stability of the colloidal system. It was found that in case when persulfate was applied as oxidant it is possible to vary effectively the particle size of composite microgels by changing the ethanol concentration in water. Contrary, when FeCl3 was used as oxidant formation of secondary particles was detected leading to dispersions with bimodal particle size distribution. The conductivity of the composite particles was much higher if polypyrrole synthesis was carried out in pure water. (C) 2003 Elsevier Ltd. All rights reserved.