The articular cartilage (AC) is a dense, translucent, and avascular connective tissue primarily responsible for bearing the load of normal human activities. Due to its lack of blood vessels and nerves, the intrinsic regenerative capacity of articular cartilage following injury is limited. The regenerative capacity of injured articular cartilage is limited when the diameter exceeds 4 mm. Therefore, clinical treatment primarily relies on the utilization of materials for cartilage tissue engineering and artificial cartilage. Due to the similar composition and high water content of cartilage, hydrogels with a three-dimensional network structure have been extensively employed in research on cartilage replacement and repair. This review presents a comprehensive overview of recent advancements in the utilization of hydrogels as biomaterials for artificial cartilage, elucidating their pivotal role in facilitating cartilage repair and regeneration engineering. The discussion encompasses diverse properties and their corresponding functionalities of functionalized hydrogels, while also summarizing the current research challenges and prospects in this field.