This work reports about the enhancement of the thermal conductivity of an acrylic pressure-sensitive adhesive (PSA) with the incorporation of functionalized and reduced graphene oxide (frGO) sheet in the composition. Bifunctional isocyanatoethylmetharcylate (IEMA) was intercalated (so-called 'functionalization') to the GO surface mainly at its -COOH sites. The remaining oxygenated groups on the GO surface were reduced by dimethyl hydrazine. The frGO was successfully incorporated into PSA matrix through in-situ polymerization of acrylic monomers and subsequently crosslinked under UV radiation. The conductivity and the peel strength of the PSA were studied as a function of filler content, filler modification (functionalization and/or reduction), UV-radiation dosage and mode of filler insertion (through in-situ polymerization or mechanical mixing). frGO/PSA showed much better properties than the PSA system with bare or IEMA-functionalized unreduced GO. In-situ polymerization was found to be more effective method for frGO insertion. Within the range of filler content (0.0-1.0) wt% and UV-radiation dosages of (400-3000) mJcm(-2), the thermal conductivity and peel strength of the acrylic PSA-system under investigation varied in the range of 0.17-1.03 Wm(-1)K(-1) and 2831-299 g(f)/25 mm. This is the first report on 'reduced GO covalently bonded to polymer chain in an adhesive-composition' providing novel idea to make PSA-system with balanced thermal conductivity and peel strength with perspective for application in miniature electronic industries.