Poly (N-isopropylacrylamide-acrylic acid) [p(NIPAM-AAc)] microgel was successfully fabricated using the precipitation polymerization method. Silver (Ag) nanoparticles and graphene oxide (G) were used to fabricate the following hybrid microgels: Ag-p(NIPAM-AAc) (Ag-HMG), Ag-G-p(NIPAM-AAc) (Ag-G-HMG), and G-p(NIPAM-AAc) (G-HMG). Ag-HMG, Ag-G-HMG, and G-HMG were characterized using a Zetasizer and UV-Vis spectroscopy. The reduction of a series of different compounds with comparable and distinct chemical structures was catalyzed by synthesized Ag-HMG, Ag-G-HMG, and G-HMG hybrid microgels. The average size of Ag nanoparticles was found to be ~50 nm. Ag nanoparticles were synthesized within microgels attached to G sheets. Ag-p(NIPAM-AAc), Ag-G-p(NIPAM-AAc), and G-p(NIPAM-AAc) hybrid microgels were used for the catalytic reduction of nitroarenes and dyes. By comparing their apparent rate constant (kapp), reduction duration, and percentage reduction, the activity of HMG (hybrid microgel) as a catalyst towards different substrates was investigated. Graphene sheets play role in electron relay among Ag nanoparticles and microgels.