It is widely recognized that it is hard to prepare hydrophilic graphite nanoparticles because of their high crystallinity and inert characteristics. In this study, we successfully synthesized the hydrophilic graphite nanoparticles by using liquid phase pulsed laser ablation method which has been actively employed for the thin film deposition up to now. The obtained hydrophilic graphite showed an ultra-high dispersion stability in water, because the hydrophilic functional groups like carboxyl and carbonyl group was simultaneously introduced onto the graphite surface with the nanoparticle formation, as confirmed by FT-IR and zeta potential measurements. Finally, a markedly enhanced gas sensing ability for acetone was shown in comparison with the conventional carbon black for the carbon polymer composite sensor with polyethyleneglycol (PEG).