A new emulsion process has been developed for the direct synthesis of the emeraldine salt of polyaniline (PANI) that is soluble in organic solvents. The process entails forming an emulsion composed of water, a water soluble organic solvent (e.g., 2-butoxyethanol), a water insoluble organic acid (e.g., dinonylnaphthalene sulfonic acid) and aniline. Aniline is protonated by the organic acid to form a salt which partitions into the organic phase. As oxidant (ammonium peroxydisulfate) is added, PANI salt forms in the organic phase and remains soluble. As the reaction proceeds, the reaction mixture changes from an emulsion to a two phase system, the soluble PANI remaining in the organic phase. With dinonylnaphthalene sulfonic acid (DNNSA) as the organic acid, the resulting product is truly soluble in organic solvents such as xylene and toluene(not a dispersion), of high molecular weight (Mw >22,000), film forming and miscible with many polymers such as polyurethanes, epoxies and phenoxy resins. As cast, the polyaniline film is only moderately conductive, (10−5 S/cm), however treatment of the film with surfactants such as benzyltriethylammonium chloride (BTEAC) or low molecular weight alcohols and ketones such as methanol and acetone increases the conductivity 2–3 orders of magnitude.