Abstract We reported a chemical approach for the in-situ preparation of conducting polyaniline (PANI)/Fe 2 O 3 composite dispersions using dodecylbenzene sulfonic (DBSA) acid both as dopant and surfactant. The PANI/Fe 2 O 3 composite dispersions were characterized by X-ray diffraction, UV-vis and FT-IR spectra and conductivity measurement. The dispersions showed good stability and existed without precipitate for at least half a year. The gas-sensing behavior of the composite film to 100 ppm of NH 3 was studied through monitoring the change of the resistance.