Poly(N-isopropylacrylamide-co-acrylamide) (PNA-BIS-2) microgels were synthesized by free radical precipitation polymerization in aqueous medium. Spherical Ag nanoparticles with diameter of 10-20 nm were fabricated inside the PNA-BIS-2 microgels by in-situ reduction of silver nitrate using sodium borohydride as reducing agent. The Ag nanoparticles- loaded hybrid microgels were characterized by Scanning electron microscopy (SEM), Transmission electron microscopy (TEM), Energy dispersive X-ray (EDX), Scanning transmission electron microscopy (STEM), Ultraviolet visible spectroscopy (UV Visible), Thermogravimetric analysis (TGA) and X-ray diffraction (XRD). Ag contents in the hybrid system were determined by inductively coupled plasma - optical emission spectrometry (ICP-OES). Various nitroarenes were successfully converted into their respective aromatic amines with good to excellent yields (ranging from 75% to 97%) under mild reaction conditions. The catalyst has ability to successfully convert substituted nitroarenes into desired products keeping many functionalities intact. The catalyst can be stored for long time without any sign of aggregation and can be used multiple times without any significant loss in its catalytic activity.