Synthesis of Ag nanoparticles containing polyacrylamide (PAm) hydrogel composites was performed by free-radical cross-linking polymerization of acrylamide monomer in an aqueous medium containing Ag+ ions. The Ag nanoparticle/PAm composites exhibit faint yellow colour and are found to stable under ambient conditions, without undergoing oxidation. TEM micrographs reveal the presence of nearly spherical and well-separated Ag nanoparticles with diameters in the range of 4-7 nm. UV-vis studies apparently show the characteristic surface plasmon band at similar to 415 nm, for the existence of Ag nanoparticles within the hydrogel matrix. The effect of varying Ag+ ion concentration within the PArn hydrogels on the amount of formation of Ag nanoparticles, as well as on the bulk properties of hydrogel nanocomposites such as equilibrium swelling, optical and electrical properties are studied. The Ag/PAm hydrogel nanocomposites have higher swelling ratio and lower electron transfer resistance than its corresponding conventional hydrogel. (c) 2007 Elsevier B.V. All rights reserved.