Composite materials containing conducting polypyrrole and insulating poly (vinyl methyl ether) (PVME) have been synthesized by oxidative polymerization of pyrrole in ethanol using FeCl3oxidant in the presence of PVME. The ac conductivity measurements have been carried out in the frequency range of 100 Hz to 10 MHz and in the temperature range of 110 to 350 K. The frequency dependent conductivity has been explained on the basis of a small polaron tunnelling mechanism. ©1997 American Institute of Physics.