Polypyrrole was prepared by oxidation polymerization (polyaddition) of pyrrole with ratios of the oxidant (1:2), bentonite pillared nanocomposite clay based on Fe, Al, and Fe-Al was prepared. The polypyrrole nanocomposites was prepared and characterized via XRF, FTIR, XRD and TEM. The thermal stability and electrical conductivity of the polypyrrole and its nanocomposites were investigated. XRD and TEM proved that the particle size of Bentonite was reducedwhen exfoliated in the polypyrrole. It was found that the thermal stability and electrical conductivity of the PPy were enhanced by the addition ofmetal-pillared Bentonite. It was found the I-V relation is Ohmic, and the conduction mechanism of the reaction is electronic.