Copolymer microgel composed of N-isopropyl acrylamide and methacrylic acid, poly(NIPAM-MAA), was synthesized by free radical emulsion polymerization using N,N-(1,2-dihydroxyethylene) bisacrylamide as cross-linking agent. The hybrid microgels poly(NIPAM-MAA)-Au and poly(NIPAM-MAA)-Ag, were synthesized by in-situ reduction of metal ions using sodium borohydride (NaBH4) as reducing agent. The temperature and pH sensitivity of pure and hybrid microgels were studied by dynamic light scattering (DLS) and UV-Visible spectroscopy. The existence of gold and silver nanoparticles inside the microgel network was confirmed by transmission electron microscopy (TEM). Poly(NIPAM-MAA)-Au and poly(NIPAM-MAA)-Ag hybrid microgels were tested for the comparative catalytic activity towards the reduction of 4-nitrophenol to 4-aminophenol. The apparent rate constant (kapp) for poly(NIPAM-MAA)-Au was found superior than poly(NIPAM-MAA)-Ag.