Graphene sheets, which possess unique nanostructure and a variety of fascinating properties, are considered as promising nanoscale building blocks of new nanocomposites, namely as a support material for the dispersion of metal nanoparticles. One of the methodologies used to prepare graphene sheets is the chemical exfoliation of graphite in aqueous medium, which produces oxygen functionalized graphene sheets. Here, we show that the presence of oxygen functionalities at the graphene surface provides reactive sites for the nucleation and growth of gold nanoparticles. Gold nanoparticles are effectively grown at functionalized graphene surfaces using a simple chemical method in aqueous medium. The nucleation and growth mechanism depends on the degree of oxygen functionalization at the graphene surface sheets, no gold nanoparticles are obtained at totally reduced graphene surfaces. Additionally, our studies indicate that the graphene/gold nanocomposites are potential substrates for SERS (surface enhanced Raman scattering) in particular for single gold nanoparticle SERS studies.