In this study, poly(vinyl chloride) (PVC), polyindole (PIN), and PVC/PIN conducting composites having five different compositions were used. Particle sizes, densities, dielectric constants, and sedimentation ratios of the materials were determined. The zeta‐potentials of the samples were measured in aqueous and nonaqueous (silicone oil [SO]) media. The dispersions prepared in SO were subjected to external electric field strength, and their electrorheological properties were investigated. Then the effects of dispersed particle volume fraction, shear rate, external electric field strength, frequency, and temperature onto electrorheological activities of the dispersions were examined. Further, creep and creep‐recovery tests were applied to the PIN/SO and PVC/PIN/SO dispersions, and reversible viscoelastic deformations were observed. Finally, the vibration damping capacity of PVC (66%)/PIN (34%)/SO dispersion system was tested by using an automobile shock absorber. Copyright © 2011 John Wiley & Sons, Ltd.