The effect of high pressure on reduced graphene oxide (RGO) has been investigated using X-ray diffraction (XRD) and infrared (IR) absorption spectroscopy. Our XRD measurements show two-step reversible compression in the inter-layer spacing of RGO whereas intralayer ordering exhibits a high pressure behavior similar to that of graphite up to 20 GPa. The line shape analysis of (100) peak, representing the intra-layer ordering, suggests presence of local out of plane distortions in RGO in the form of puckered regions which progressively straighten out as a function of pressure. IR measurements show reversible changes in spectroscopic features attributed to remnant functional groups in the inter-layer region. These measurements suggest high stability and recovering ability of RGO under pressure cycling.