The Carbon-based nanomaterials play a vital role because of they are biocompatible, economical, efficient, stable and environmental-friendly nature, which makes superior to use them in biotechnology, biomedical, electronics and electrical applications. Under the classification of carbon-based nanomaterials, carbon nanofibers (CNFs) are the predominantly used nanomaterial in many healthcare applications due to nontoxicity. CNFs are easily and uniformly dispersible in nature when compared to other carbon-based nanomaterials. In this study, the first part discusses about the acidfunctionalization of CNFs. The second part discusses the preparation and characterization of Functionalized CNF (F-CNF)-Gelatin/PVA hydrogel. And, the final part concentrates to enhance the electrical conductivity of the hydrogel. The main objective of this work is to study the effect of hydrogel formed via acid functionalized CNF as a crosslinker in the conducting nanocomposite. Additionally, analysis on functionality of the prepared hydrogel on ECG electrode application was discussed in this paper. In comparison with conventional nano-based electrodes, the current work with F-CNF based conducting nanocomposite hydrogel patch has better performance which involves usage of less harsh chemicals. It can able to efficiently monitor biosignals, such as in electromyography and electroencephalography.