Dispersion dynamics in composites of PMMA-BA and LC E44 were investigated using dielectric relaxation spectroscopy. Morphological studies have shown the homogeneous distribution of LC droplets in the polymer matrix. The outcome was deduced in terms of shape and size of LC droplet, interfacial charge-layer effect, glass transition temperature of composites and miscibility of LC in polymer. The temperature dependent dielectric relaxation spectra have been studied. It was observed that the intensity of Maxwell–Wagner interfacial polarization peak varies with respect to the applied temperature. The high-frequency relaxation process seems to be the Debye-type behavior due to dipolar rotation around the long molecular axis.