A nanocomposite of silver nanoparticles and reduced graphene oxide (Ag/rGO) has been developed as a catalyst for the reduction of 4-nitrophenol (4-NP) to 4-aminophenol (4-AP) with sodium borohydride, owing to the larger specific surface area and synergistic effect of rGO. A facile and rapid microwave-assisted green route has been used for the uniform deposition of Ag nanoparticles and the reduction of graphene oxide simultaneously with l-arginine as the reducing agent. The resulting Ag/rGO nanocomposite contained about 51 wt% of Ag, and the Ag nanoparticles deposited on the surface of rGO had a mean diameter of 8.6 ± 3.5 nm. Also, the Ag/rGO nanocomposite exhibited excellent catalytic activity and stability toward the reduction of 4-NP to 4-AP with sodium borohydride. The reduction reaction obeyed the pseudo-first-order kinetics. The rate constants increased not only with the increase of temperature and catalyst amount but also with the increase of initial 4-NP concentration, revealing that the support rGO could enhance the catalytic activity via a synergistic effect. A mechanism for the catalytic reduction of 4-NP with NaBH4 by Ag/rGO nanocomposite via both the liquid-phase and solid-phase routes has been suggested.