The transmission electron microscopy images of in situ prepared multiwall carbon nanotubes (MWNTs) and polyaniline (PANI) composites show that nanotubes are well dispersed in aqueous medium, and the nanofibers of PANI facilitate intertube transport. Although low temperature transport indicates variable range hopping (VRH) mechanism, the dc and ac conductivity become temperature independent as the MWNT content increases. The onset frequency for the increase in conductivity is observed to be strongly dependent on the MWNT weight percent, and the ac conductivity can be scaled onto a master curve. The negative magnetoresistance is attributed to the forward interference scattering mechanism in VRH transport.