Graphene-water interaction has been under scrutiny ever since graphene discovery and realization of its exceptional properties. Several computational and experimental reports exist that have tried to look into the interactions involved, however, none of them addresses the issue in its entirety. We have tested the inherent hydrophobic behavior of a small graphene in water droplet by the means of MD simulations. The analysis has been extended to multiple graphene flakes in water and their respective size dependent responses to water droplet. Graphene retreats from water droplet to encapsulate it from the surface. This response was highly dependent upon graphene size with respect to water content. Additionally, we also report self-assembly of multilayered graphene in water by means of MD simulations, an observation which can be utilized to synthesize such structures in a cost-effective way by experimentalists. To fully comprehend graphene behavior in water, graphene deformation was analyzed in the presence of water molecules. It was noticed that graphene wrinkled to wrap around water molecules and resisted complete failure, one that is seen in case of a sole graphene sheet. Our work will not only address the question about whether graphene is hydrophobic or hydrophilic but also provide insight into the behavior of graphene surface and mobility when exposed to water which can be exploited in numerous applications.