An inverted emulsion pathway to synthesize conducting polypyrrole (PPy) into a layer of inorganic clay within a nano level is investigated, using dodecylbenzenesulfonic acid (DBSA) as both an emulsifier and a dopant. The existence of the intercalated polymer was verified by an X-ray diffraction (XRD) analysis. A SEM analysis indicated that the shape of both the PPy and PPy/clay nanocomposite (PPCL) was irregular and their sizes were within a range of 10 ~ 20 μm. Furthermore, the electrorheological (ER) behavior of the PPCL-based ER fluid was also investigated using a rotational rheometer equipped with a high voltage generator in both a controlled shear stress mode and a controlled shear rate mode.