The thermoelectric properties of Bi-FeSb2 nanocomposites are reported. The electrical resistivity and the Seebeck coefficient measurements show a significant dependence on bismuth concentration. Our results reveal that the shifting of the Seebeck peak in FeSb2 nanocomposites is purely a grain size-effect. The thermal conductivity data indicates a presence of an electron-phonon interaction. Over all, our analysis of the the thermoelectric properties of Bi-FeSb2 nanocomposites provide additional evidence for phonon-drag in FeSb2.