Polyaniline (PANI) of high stability and good processibility was prepared in acidic aqueous dispersion/solution, using the support of a water soluble polymer poly(vinyl pyrrolidone) (PVP). The high degree of dispersion and near solubility and storage stability of the PANI prepared, are explained on the basis of the synchronized establishment of hydrogen bonding, between segments of PANI being formed during the polymerization of aniline and the PVP present in the solution. Studies of the prepared dispersions/solutions of the PANI-PVP composites, by viscometry and UV-visible spectrophotometry, lend support to this view. Results of studies of the isolated PANI-PVP composites of different PANI loadings by FTIR spectroscopy, also support this view. The PANI-PVP composites were also thermally characterized, employing thermogravimetric analysis and differential scanning calorimetry (TGA and DSC, respectively). They were characterized microscopically, by transmission electron microscopy (TEM), for the prepared dispersion or solution of PANI in the presence of PVP, and by scanning electron microscopy (SEM) for selected isolated PANI-PVP composites.