This paper deals with synthesis of nanocomposite of PPY with photoproduct of ferricyanide and piperazine. The synthesized photoproduct and nanocomposite material is characterized by standard analytical techniques like FTIR, X-ray diffraction (XRD), UV-Vis spectroscopy, scanning electron microscopy (SEM). The XRD analysis confirms two things; first synthesized nanocomposite shows crystalline nature, secondly, the phase structure of composite remains unchanged during doping of photoproduct in the polymer matrix. The dielectric property is strongly affected by the presence of photoproduct in the PPY matrix. The dielectric constant (ε) and dielectric loss (tan δ) factors decrease with the increase in frequency only up to a certain limit. The a.c. conductivity also increases with increase in frequency. The current-voltage characteristic of synthesised PPY nanocomposite is completely symmetrical with respect to the polarity of the applied voltage and shows non-linear ohmic behaviour.