A facile method was developed to synthesize in high yield dispersed silver nanoparticles (AgNPs) with small particle sizes of less than 10 nm. Silver nitrate was reduced to silver nanoparticles by p-chloroaniline in the presence of polyoxyethylene maleate 4-nonyl-2-propylene-phenol (NMA) as a stabilizer. The produced AgNPs were used to prepare hybrid polymer based on N-isopropylacrylamide (NIPAm), 2-acrylamido-2-methylpropane sulfonic acid (AMPS), N,N-methylenebisacrylamide (MBA) and potassium persulfate (KPS) using a semi-batch solution polymerization method. The prepared AgNPs and hybrid polymer were characterized by Fourier transform infrared (FTIR) spectroscopy, X-ray diffraction (XRD) patterns and transmission electron microscopy (TEM). The corrosion inhibition activity of the AgNPs and hybrid polymer towards steel corrosion in the presence of hydrochloric acid has been investigated by polarization and electrochemical impedance spectroscopy (EIS) methods. Polarization measurements indicate that the AgNPs and hybrid polymer acts as a mixed type-inhibitor and the inhibition efficiency increases with inhibitor concentration. The results of potentiodynamic polarization and EIS measurements clearly showed that the inhibition mechanism involves blocking of the steel surface by inhibitor molecules via adsorption.