A novel water-soluble, conducting polypyrrole was synthesized by horseradish peroxidase (HRP), in the presence of sulfonated polystyrene, as a polyanionic template. The HRP is an effective catalyst for the oxidative polymerization of pyrrole in the presence of hydrogen peroxide at room temperature. The reaction is sensitive to solution pH and it is performed in pH 2 aqueous solutions. Polymerization of pyrrole by this biological route produced a conducting water-soluble polypyrrole for the first time. The reaction is benign and in one pot, and the product requires minimal purification. The reversible redox activity of the polypyrrole displays a hystersis loop with pH changes. FT-IR, UV-vis absorption spectroscopy and cyclic voltammetry are used in the characterization of the synthesized polypyrrole. These studies confirm the electroactive and conducting form of polypyrrole, similar to that which has been traditionally synthesized, chemically and electrochemically. (C) 2004 Wiley Periodicals, Inc.