DBSA-doped polyaniline powder (DBSA-PANI) was mixed with Fe nanoparticles to obtain the DBSA-PANI-Fe composite. Powder of the composite was compacted to the pellets to study the electrical property and magnetization characteristic by measuring the conductivity in 100—300 K and the magnetization curve at room temperature. The conductivity of the composite pellet is linearly decreased from 0.25±0.02 to 0.07±0.01 S/cm with increasing the Fe nanoparticle content from 0 to 70 wt%. For the pellets containing the Fe nanoparticles less than 70 wt%, the variation of conductivity with temperature reveals that the charge transport mechanism can be considered to be one-dimensional variable-range-hopping (1D-VRH). For the pellet with 70wt%-Fe nanoparticles, however, the charge transport mechanism can not be well understood in terms of the VRH model. All the DBSA-PANI-Fe composite pellets show a magnetic hysteresis loop and a hard magnetization characteristic. The saturation magnetization monotonously increases from 32 to 78 emu/g with increasing the Fe nanoparticle content from 30 to 70 wt%. The saturation field and the coercivity are estimated to be about 5500 Oe and 385 Oe respectively, independent of the Fe nanoparticle content.