Herein we report a simple and green synthesis of smart Au and Ag@Au nanocomposite particles using poly(N-isopropylacrylamide)/polyethyleneimine (PNIPAm/PEI) core-shell microgels as dual reductant and templates in an aqueous system. The nanocomposite particles were synthesized through a spontaneous reduction of tetrachloroauric (III) acid to gold nanoparticles at room temperature, and in situ encapsulation and stabilization of the resultant gold nanoparticles (AuNPs) with amine-rich PEI shells. The preformed gold nanoparticles then acted as seed nanoparticles for further generation of Ag@Au bimetallic nanoparticles within the microgel templates at 60藵C. These nanocomposite particles were characterized by TEM, AFM, XPS, UV-vis spectroscopy, zeta-potential, and particle size analysis. The synergistic effects of the smart nanocomposite particles were studied via the reduction of p-nitrophenol to p-aminophenol. The catalytic performance of the bimetallic Ag@Au nanocomposite particles was 25-fold higher than that of the monometallic Au nanoparticles. Finally, the controllable catalytic activities of the Au@PNIPAm/PEI nanocomposite particles were demonstrated via tuning the solution pH and temperature.