Solar light-activated photocatalyst nanoparticles (NPs) are promising environment-friendly low cost tools for water decontamination, but their dispersion in the environment must be minimized. Here, we propose the incorporation of TiO2-NPs (also in combination with graphene platelets) into highly biocompatible hydrogels as a promising approach for the production of photoactive materials for water treatment. We also propose a convenient fluorescence-based method to investigate the hydrogel photocatalytic activity in real time with a conventional fluorimeter. Kinetics analysis of the degradation profile of a target fluorescent model pollutant demonstrates that fast degradation occurs in the matrix bulk. Fluorescence anisotropy proved that small pollutant molecules diffuse freely in the hydrogel. Rheological and scanning electron microscopy characterization showed that the TiO2-NP incorporation does not significantly alter the hydrogel mechanical and morphological properties.