Single and few-layer graphene nanosheets (GNs) have successfully synthesized by a modified Hummer’s method followed by chemical reduction of exfoliated graphene oxide (GO) in the presence of hydrazine monohydrate. GO and GNs were characterized by X-ray photoelectron spectroscopy (XPS), Fourier transform infrared spectroscopy (FTIR), X-ray diffractions (XRD), Raman spectroscopy, Transmission electron microscopy (TEM), Atomic force microscopy (AFM),Optical microscopy (OM) and by electrical conductivity measurements. The result showed that electrical conductivity of GNs was significantly improved, from 4.2 × 10−4 S/m for GO to 12 S/m for GNs, possibly due to the removal of oxygencontaining functional group during chemical reduction. In addition, the NO2 gas sensing characteristics of GNs are also discussed.