Small-angle neutron scattering (SANS) and ultraviolet (UV)–visible spectroscopic techniques are used to investigate the microstructural changes in polyacrylamide (PAAm) hydrogels on gamma irradiation. SANS measurements have revealed the presence of inhomogeneities in nanometre scale and reduction of their size with increase in dose. Analysis of SANS data also revealed the increase in the correlation length with increase in dose. The extinction coefficient obtained from the UV–visible spectroscopic studies exhibited λ^−β dependence between 500 and 700 nm and is understood to arise from the existence of scatterers (inhomogeneities) in submicron scale in PAAm hydrogels. The increase in value of exponent β with increase in dose indicates that the size of scatterers decrease with increase in dose.