When a pure liquid crystal is dispersed into a suitable polymer to form micron-sized droplet, then it is called Polymer-dispersed liquid crystal (PDLC). In the present study, PDLC of different concentrations were prepared by dispersing a conducting polymer poly (3, 4–ethylenedioxy thiophene): poly (styrene sulfonate) into a cholestryl palmitate. The differential scanning calorimetry and fabry perot scattering studies were employed to study thermal and optical properties. It was found that the phase transition for PDLC occurs at a temperature different than those exhibited by pure liquid crystal. The behaviour of PDLC for parallel and perpendicular electric field has been investigated and the dielectric constant is determined. The value of dielectric constant and conductivity were found to increase with increasing concentration of polymer. The bistability and reflective properties of pure cholesteric liquid crystal can be minimized by dispersing polymer which makes material suitable for high contrast at large viewing angles.