The effect of charge density on the interaction between cationic peptides and oppositely charged poly(acrylic acid-co-acrylamide) microgels was investigated together with effects of charge localization and interplay between electrostatic and hydrophobic interactions. The microgel charge content was controlled by varying acrylic acid/acrylamide ratios (25/75-100/0 mol %) in the microgel synthesis, whereas peptide charge density was controlled by using monodisperse peptides containing alanine and lysine in a series of repeated patterns (25-50 mol % lysine). Results show that peptide uptake in the microgels is largely determined by microgel charge density, whereas peptide-induced microgel deswelling kinetics is influenced by peptide charge density to a higher degree. Furthermore, electrolyte-induced peptide detachment is highly influenced by both microgel and peptide charge density. Thus, at high charge contrast, peptides could not be detached from the microgels, whereas reducing the charge density of either peptide or microgel promoted electrolyte-induced peptide release. The localization of charges in the peptide sequence also plays a significant role as the interaction strength increased for peptides where all charged groups are located at the end of the sequence, as opposed to homogenously distributed throughout the peptide. Such an asymmetrically charged peptide thus displayed higher uptake, faster deswelling response, and lower release degrees than its homogeneously charged analogue in microgels with high charge content, while these differences were absent for lower microgel charge densities. Hydrophobic substitutions (alanine -> leucine) in the peptide chain at fixed charge content increased peptide binding strength and eliminated peptide detachment at high ionic strength. Theoretical modeling of the effect of peptide and microgel charge density on peptide-induced microgel deswelling gave good agreement with experimental results.