Tissue engineering, a rapidly evolving field in regenerative medicine, has seen significant advancements with the utilization of hydrogels as promising biomaterials. These hydrogels, composed of crosslinked hydrophilic polymer networks, possess properties that closely resemble the natural extracellular matrix, making them an attractive candidate for various tissue engineering applications. This comprehensive review explores the multifaceted dimensions of using hydrogels in tissue engineering, encompassing crucial subtopics such as hydrogel design and synthesis, biofunctionalization strategies, mechanical properties, cell interactions, 3D bioprinting applications, and the journey toward clinical translation. By understanding the intricacies of these subtopics, the review aims to provide insights into the diverse aspects of hydrogel-based tissue engineering, highlighting its potential for facilitating tissue regeneration and advancing biomedical research. Through this exploration, the review contributes to the broader goal of fostering the development of innovative biomaterials and regenerative medicine approaches for improving human health and well-being.