Graphene sheets decorated with Au nanodots are synthesized by deposition of Au of three different thicknesses and subsequent annealing at 400 °C. Different thicknesses of Au film for the formation of Au nanodots on graphene are measured using Rutherford backscattering spectrometry and morphology is studied using scanning electron microscopy. Raman spectroscopy indicates 3–6-fold increase in ID/IG ratio depending on the content of Au deposited on graphene. The increase in disorder in Au decorated graphene layers is explained on the basis of interaction of Au atoms with Π bonds of graphene. The splitting and blueshift in G band signifies compressive strain in Au deposited graphene. X-ray diffraction studies using synchrotron radiation source confirm compressive strain in graphene, which increases with increase of Au film thickness.