In the present article, the authors have prepared nanocomposites based on chitosan (CS) and double walled carbon nanotubes (functionalized with carboxyl groups (DWCNT-COOH) and un treated DWCNT) by casting the stable mixture in a mold. Different concentrations of DWCNT were used in the preparation of nanocomposite hydrogels. These differently concentrated DWCNT hydrogels were chemically characterized using Fourier Transform-Infrared Spectroscopy (FT-IR), Scanning Electron Microscopy (SEM) and Thermal analysis and calorimetry (TGA). The dispersion of the carbon nanotubes were observed in the chitosan matrix by SEM. The addition of DWCNT in the composite hydrogel significantly reduced the water uptake ability. However, the water uptake ability of the CS/DWCNT-COOH nanocomposite has been better than the CS/ DWCNT. Also, dispersion of functionalized DWCNT in the chitosan matrix, was increased the thermal stability of hydrogels.