The present work describes the synthesis of a cellulose and gelatin based hydrogel by the grafting of poly(acrylic acid) using ammonium persulphate (APS)-glutaraldehyde as the initiator–crosslinker system. The structure of the hydrogel was studied through scanning electron microscopy (SEM) and FTIR. The maximum swelling rate of C-G-g-poly(AA) was found to be 92 g g⁻¹ at pH 10. The size and structure of the prepared silver nanoparticles (AgNPs) were studied through TEM and zeta potential, and it was found that the synthesized AgNPs were spherical and the size range was 11–30 nm. The reduction process followed pseudo 1st order kinetics. EtBr and eosin dye degradation were more than 4 times faster, when AgNPs were used with sodium borohydride. Thus, it can be concluded that the synthesized C-G-g-poly(AA) AgNPs hybrid hydrogel is effective for the reduction and degradation of carcinogenic dyes in wastewater.