In this article, the preparation of hydrogels containing conducting polymer@lignin hybrids and their application to sensing materials were demonstrated using diverse techniques. A conducting polymer, polypyrrole (PPy) was polymerized on the surface of lignin and successful formation was analyzed with Fourier-transform infrared spectroscopy and scanning electron microscopy. Subsequently, PPy@lignin hybrids were mixed with a hydrogel matrix to obtain a conductive hydrogel. The feasibility of using the hydrogel as a sensing material was shown by obtaining reasonable sensing signals using various electrical measurements when adding solvents and solutions to the sensor system. The significance of sensor signals was confirmed with complementary experiments. This study shows that the hydrogel containing the PPy@lignin could be used for sensor applications.