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In the last decade there has been a steady increase in the number of publications describing the synthesis, characterization and applications of hybrid particles. Colloidal aqueous microgels form an important subdivision of polymer colloids used for the deposition of different functional materials. Due to their numerous attractive properties, microgel particles have been used as templates for the synthesis, storage and transportation of nanostructured materials. This paper reviews the important developments in the area of composite microgels over the last decade, and is limited to microgel particles operating in aqueous media. The patent literature is not included in the review. Different synthetic approaches as well as some properties and applications of composite microgels are discussed. Copyright © 2006 Society of Chemical Industry [ABSTRACT FROM AUTHOR]