Articular cartilage injury is a significant concern within osteoarthritis (OA), and while traditional pharmacological treatments and surgical interventions have provided some relief in pain and promoted cartilage regeneration to a certain extent, long-term therapeutic outcomes remain suboptimal. The advancement of cartilage tissue engineering has introduced novel perspectives for cartilage regeneration. Hydrogel scaffolds, as crucial components in tissue functionality, have evolved from their initial role of physical coverage or single functionality to a current combination of diverse functionalities. This review comprehensively examines recent applications of functional hydrogels in cartilage regeneration. The article begins with fundamental knowledge, including treatments for cartilage defects and basic characteristics of hydrogels. Subsequently, in the context of cartilage tissue engineering, we explore five types of functional hydrogels, focusing on their unique physicochemical properties, substance delivery, and stimuli-responsive features for cartilage repair. The discussion covers their mechanisms of repair, classification, and drawbacks, and concludes with an overview of hydrogel development for cartilage repair based on bibliometric research. Clinical products related to hydrogels in this field will be summarized later. Finally, recommendations are provided on current challenges and future directions in developing functional hydrogels for cartilage regeneration.