Thin films of magnetic-nanocomposite are prepared using a novel two step ion-implantation technique. Structural assessment via TEM of the ion bombarded iron-polymer composite shows development of fine magnetic nanoparticles (20–50 A) in a carbonaceous matrix. The experimental temperature dependence of conductivity of the composite, in the temperature range 10–300 K, follows the exponential law σ = σo exp [(-T
o/T)γ], where T
o and γ are constants. The observed higher values of γ > 1 imply the presence of more than one conducting channel in the composite. The secondary conducting channels, beside hopping conductivity, may arise from the conducting graphitic matrix around Fe nanoparticles. The room temperature magneto-transport measurement indicates a 0.5% change in magnetoresistance at 0.5T field. The observed anomalous Hall voltage confirms the presence of magnetic nature of nanoparticles.