In the present study, the effect of nanosized graphene oxide layer on thermal stability and biocompatibility of gold nanorods has been examined. The graphene oxide-wrapped gold nanorods were prepared by electrostatic interaction between negatively charged graphene oxide and positively charged nanorods. The resulting nanohybrids were then heated at different time intervals to 95 C in a water bath to assess the effect of heat on the rods morphology. The structural changes in gold nanorods were monitored via UV-Vis spectroscopy measurements and transmission electron microscopy images. In similar experiments, the graphene oxide used to wrap gold nanorods was reduced by ascorbic acid in a 95 C water bath. Our results indicate that while bare gold nanorods are highly vulnerable to elevated temperatures, graphene oxide and reduced graphene oxide-coated gold nanorods remain thermally stable with no structural changes. We also confirmed that the enhanced thermal stability is highly dependent on the concentration of deposited graphene oxide available on the surface of the gold nanorods. In addition, we performed an MTT (3-[4, 5-dimethylthiazol-2yl]-2, 5-diphenyltetrazoliumbromide) assay to make a comparison between the cytotoxicity of the nanohybrids and their primary building blocks on human dermal fibroblast cells as a normal cell line. We found evidence that graphene oxide can enhance the biocompatibility of the rods through covering toxic chemicals on the surface of them.