Fe-filled carbon nanotube-polystyrene composites exhibit inductive, capacitive and resistive phases, respectively, as materials were measured by the AC impedance spectrometry in the range of 1 MHz to 0.1 Hz. The presence of inductive component in composite films is novel and truly arises from carbon nanotubes associated with encapsulated ferromagnetic Fe crystals. (C) 2002 Elsevier Science B.V. All rights reserved.