Polypyrrole is a typical electrical conducting polymer, which has an excellent charge transport property. Cyclodextrins are a group of toxic-free and cyclic oligosaccharide molecules, capable of capturing low molecular weight chemicals. Considering these advantages, hybrid materials of polypyrrole and cyclodextrin can be used to detect hazardous compounds. Cyclodextrin molecules can accommodate toxic chemicals by the formation of host-guest complexes and generate electric signals, which are effectively delivered by polypyrrole backbone. In this study, the polypyrrole/cyclodextrin hybrid material was prepared using a facile wet method and included into a hydrogel. Subsequently, it was applied to a simple sensor system with a gold-patterned electrode for the detection of potentially hazardous material, methyl paraben. Compared with pristine polypyrrole, it was found that the polypyrrole/cyclodextrin hybrid showed an improved performance. This study can be an example of using environmentally benign conducting polymer/cyclodextrin hybrids as sensing media.