Silver nanoparticles have been functionalized in situ with the electrically conducting polymer, poly(3,4-ethylenedioxythiophene)-poly(styrene sulfonate) (PEDOT:PSS) via colloidal synthesis. The formation of the functionalized silver nanoparticles, hereafter designated Ag(PEDOT:PSS), was confirmed by the appearance of the characteristic plasmon absorption peak at 420 nm in the UV-Vis spectrum of the aqueous suspension and by TEM analysis, where spherical particles with a mean size of around 8 nm (metallic core) were observed. Homogeneous thin films with granular topography, as observed by AFM, were prepared by self assembly. Electrical studies of the films showed an increase in electrical conductivity of three orders of magnitude with respect to the polymer film presumably due to the presence of the silver core. The conductive polymer/silver composite films also exhibit interesting electrochromic switching between blue and brown. These properties suggest the possibility of a variety of applications of Ag(PEDOT:PSS) films such as in electro optics devices, smart windows, amperometric sensors and capacitors.