Polypyrrole (PPy) nanocomposites with iron nanoparticles attached to 2‐acrylamido‐2‐methyl‐1‐propanesulfonic acid (AMP) were chemically prepared by varying the concentration of AMP using ammonium persulfate as an oxidant. The synthesized composites were characterized by using Fourier transform infrared (FTIR) spectroscopy, and their surface morphology and amended crystallinity were determined by using the transmission electron microscopy (TEM) and X‐ray diffraction (XRD), respectively. The electrical and magnetic properties of PPy–Fe–AMP composites were investigated at room temperature. The increase of AMP has brought out a significant increase of DC conductivity and magnetic saturation moment of the composites, which might have been caused by the increased mobility of charge carriers due to the hydrophilic AMP components. POLYM. COMPOS., 35:364–371, 2014. © 2013 Society of Plastics Engineers