In the present paper, polymeric microgels have been prepared by surfactant-free emulsion co-polymerization of acetoacetoxyethyl methacrylate (AAEM) and N-vinylcaprolactam (VCL) in water with water-soluble azo-initiator 2,2'-azobis(2-methylpropioamidine) dihydrochloride (AMPA). It was found that the particle diameter decreased gradually when higher amounts of AAEM were used in monomer mixture. Obtained microgels possess lower critical solution temperature (LCST) in water solutions, so rapid decrease of the particle size was observed at elevated temperatures. As was found using simultaneous static and dynamic light scattering, microgels undergo soft sphere-hard sphere transition during heating. (C) 2003 Elsevier Ltd. All rights reserved.