The incorporation of metal oxide nanopartides into microgels forming hybrid systems gives additional functionalities to the system and widens the field of potential application in biomedicine, biotechnology, and other fields. In particular, there have been very few investigations regarding UCST-like hybrid microgels. In connection with this, we report the preparation of UCST-like hybrid microgels of magnetite nanoparticles (Fe3O4) encapsulated in poly(acrylamide-acrylic acid) microgel matrix via an inverse emulsion polymerization method. The key factor in the preparation of hybrid microgels is the need to divide in two the aqueous phase of the emulsion and feed them separately in order to avoid the aggregation of magnetic nanoparticles prior to polymerization reaction. The morphology, size, and spherical shape of hybrid microgels are determined by scanning electron microscopy. The encapsulation of magnetite nanoparticles within the polymer matrix is confirmed by transmission electron microscopy. Dynamic light scattering is employed to study both the swelling UCST-like behavior and the surface charge of the hybrid microgels. Swelling measurements confirm that the incorporation of magnetite does not affect the thermosensitivity of the system. In order to highlight the rheological behavior that can affect the final potential applications of these hybrid systems, a deep study of the viscoelastic properties is carried out by means of an oscillatory rheometer. The dependence of G' and G '' of the microgel dispersions with the frequency suggests a gel-like behavior and hence the occurrence of structural organization. In order to understand this structure formation and the influence of the magnetite in the interaction between hybrid microgels, scaling theory was applied. In terms of rheology, the addition of magnetite leads to a change in the interaction between hybrid microgels giving rise to an increase in the elasticity of the system.