The use of thermoelectric fabrics for powering wearable devices is expected to become widespread soon. A thermoelectric fabric was prepared by coating nanocomposite of polyaniline/graphene nanosheets (PANI/GNS) on a fabric. Four samples of the fabric containing different wt% of GNS (0.5, 2.5, 5, and 10) were prepared. To characterize the samples, Fourier transform infrared (FTIR) spectra, attenuated total reflectance-Fourier transform infrared (AT-FTIR) spectra, field-emission scanning electron microscopy (FE-SEM), electrical conductivity and Seebeck coefficient measurements were used. The electrical conductivity increased from 0.0188 to 0.277 S cm−1 (from 0.5 to 10 wt% of the GNS in PANI/GNS nanocomposite). The maximum coefficient of Seebeck was 18 µV K−1 with 2.5 wt% GNS at 338 °C. The power factor improvement was from 2.047 to 3.084 μW m−1 K−2 (0.5–2.5 wt% GNS).