Polymer-clay hydrogel composite was prepared on the basis of polyacrylamide (PAAm) gel containing the clay mineral sepiolite. The properties of swelling and dye adsorption of poly(acrylamide-sepiolite) (AAm/Sep) composite hydrogel were investigated. The parameters of swelling and diffusion in water and dye solutions were calculated for the AAm and AAm/Sep hydrogels. It was found that the equilibrium swelling degree of obtained composite higher than that of AAm gel. Spectroscopic analysis of composite and composite-dye systems was done with FT-IR method. Adsorption of monovalent cationic dyes such as Basic Blue 12 (BB-12) Basic Blue 9 (BB-9), and Basic Violet 1 (BV-1), was studied on the composite. In the adsorption experiments, S (Sigmoidal) type for composite gel adsorption isotherms in the Giles classification system was found. Adsorption studies indicated that the amounts of adsorbed dyes on the AAm/Sep composite hydrogel were increased with following order; BB-12 > BB-9 > BV-1. The composite hydrogel may be considered as good candidate for environmental application to retain more water and dyes.