Polypyrrole-coated polystyrene latex particles bearing reactive N-amino functional groups (PS-PPyNH2) were prepared by the in-situ copolymerization of pyrrole (Py) and the active amino-functionalized pyrrole (PyNH2) in the presence of 1.33 mu m-diameter polystyrene (PS) latex particles. These particles were prepared by dispersion polymerization of styrene using poly(N-vinylpyrrolidone), PNVP, as a steric stabilizer. The functionalized polypyrrole-coated PS particles (PS-PPyNH2) were characterized in terms of their particle size and surface morphology using transmission electron microscopy (TEM). Infrared and X-ray photoelectron spectroscopy (XPS) detected pyrrole-NH2 repeat units at the surface of the latex particles, indicating that this monomer had indeed copolymerized with pyrrole. The core-shell structure of the PS-PPyNH2 particles was confirmed by etching the polystyrene core in THF, leading to the formation of hollow conducting polymer capsules. The PS-PPyNH2 particles were then decorated with citrate-stabilized gold nanoparticles via electrostatic interactions. Furthermore, etching of the polystyrene core resulted in the formation of gold-decorated PPyNH2 hollow capsules.