Recent advances in drug delivery have been directed towards the design of a number of intelligent systems for the treatment of various diseases. In this regard, we developed novel surfactant-modified hydrogels which are synthesized from acrylamide (AM) and acrylamido propane sulphonic acid (AMPS), in the presence of a surfactant (Latemul PD-104) using ammonium persulfate/N,N,N',N'- tetramethylethylene diamine (APS)/(TMEDA) as an initiating system and N,N'-methylenebisacrlyamide (MBA) as a crosslinker. The hydrogel formation was confirmed by Fourier transform infrared spectroscopy (FTIR) and scanning electron microscopy (SEM). The variation in the hydrogel networks formation employing different levels of synthetic parameters was verified by swelling studies. Influences of salt, biological fluids, and buffer solutions on the developed systems were also investigated. It was found that, compared to PAM hydrogel, all the surfactant-modified hydrogels were responsive towards salt concentration and pH. A robust drug release behavior was observed from surfactant-modified hydrogel systems.