Polyaniline (PANI) nanocomposites were synthesized by incorporating separately synthesized metal nanoparticles in 1-methyl-2-pyrrolidinone (NMP) solution of polyaniline. PANI was prepared by oxidative reduction of aniline using chemical method. Silver nanoparticles were produced by inert gas condensation; whereas gold nanoparticles were synthesized by the reduction of gold salt. FTIR confirmed the formation of PANI in all samples. The electrical properties of the nanocomposites were determined by impedance spectroscopy. The conductivity relaxation analysis suggested microphase separation of NMP plasticized films into phases of reduced and oxidized repeat units. The conductivity of PANI films increases with the increase in concentration of embedded nanoparticles. Incorporation of metal nanoparticles in PANI causes considerable decrease in the real part of impedance.