The synthesis of water-dispersilbe graphene nanosheets plays an important role in various practical applications. Herein, we have demonstrated an efficient method for the preparation of water-dispersible graphene hybrid material from graphene oxide (GO) and a hydrophilic-conducting polymer, namely, poly(3-aminobenzene sulfonic acid) (PABS). First, the covalent functionalization process of GO with PABS was carried out via a simple amidation reaction between acyl chloride group located on GO surface and the amino group present in the polymer. Second, the GO-polymer hybrid was chemically reduced into graphene-polymer hybrid using sodium borohydride as a reducing agent. The resulting hybrid material was characterized using various analytical techniques. Electron microscopic studies were used to characterize the morphology and chemical structure of the resulting hybrids. Fourier transform infrared spectroscopy was used to investigate the initial changes in surface functionalities, while the thermal stability of hybrid material on heating was studied via thermogravimetric analysis. The digital images provided a vivid observation on the high-dispersion stability of the hybrid material in distilled water. POLYM. ENG. SCI., 52:18541861, 2012. (c) 2012 Society of Plastics Engineers