Nickel oxide (NiO) nanosheets (NSs) deposited on different amounts (0.025, 0.05, 0.1, and 0.2 wt%) of reduced graphene oxide (rGO) are synthesized through hydrothermal method. The NiO NSs on rGO (rGO-NiO) are characterized by using X-ray diffraction (XRD), diffuse reflectance spectroscopy (DRS), Fourier transform infrared spectroscopy (FTIR), Raman spectroscopy, high resolution transmission electron microscopy (HRTEM), selected area electron diffraction (SAED) analyses, and electrochemical analysis. Electrocatalytic activity of rGO-NiO nanocomposite modified glassy carbon (GC/rGO-NiO) electrode is examined towards electrocatalytic oxidation of urea in 0.1 M NaOH using cyclic voltammetry and amperometry techniques. The GC/rGO0.1-NiO nanocomposite modified electrode shows enhanced electrocatalytic oxidation of urea than that of other modified electrodes due to the incorporation of NiO NSs on an optimum amount of rGO. The GC/rGO0.1-NiO modified electrode is used for designing electrochemical sensor for urea, and the detection limit is estimated as 0.47 μM using the amperometry technique. The sensitivity of GC/rGO0.1-NiO modified electrode is found to be 2450 μA mM−1 cm−2. In addition to good electroanalytical performance, the present urea sensor displayed good stability and acceptable anti-interference ability in the presence of 20-fold excess concentration of relevant interferents. The GC/rGO0.1-NiO nanocomposite modified electrode is successfully used for the determination of urea in water sample.