Graphene nanosheets functionalized with poly(p-phenylenediamine) (PPDA) were prepared via the in-situ chemical oxidative polymerization using potassium persulphate as a catalyst. Graphene nanosheets were previously prepared by chemical reduction of exfoliated graphite oxide. The structure and morphology of the composite material were characterized by FTIR, XPS, HRTEM, FESEM and XRD, while the thermal and electrical properties were measured by TGA and a four-probe method. FESEM and HRTEM observations indicated that the graphene sheets were encapsulated in the PPDA matrix. Furthermore, the nanocomposites exhibited improved conductivity and thermal stability as compared with pure PPDA.