A series of hydrogels containing a biodegradable dextran (Dex) chain grafted with a hydrophobic poly(-caprolactone)-2-hydroxylethyl methacrylate (PCL-HEMA) chain and a thermoresponsive poly(N-isopropylacrylamide) (PNIPAAm) chain were synthesized. The molecular weight of PCL-HEMA was determined by gel permeation chromatography, and the inner morphology of the hydrogel was observed by scanning electron microscopy. The release profiles from the hydrogels were investigated using bovine serum albumen as a model drug. It was found that the release behavior could be adjusted by varying the composition of the hydrogel. In vitro cytotoxicity studies of the hydrogels showed that the copolymer Dex-PCL-HEMA/PNIPAAm exhibited low cytotoxicity. The in vivo degradation and histological studies demonstrated that the hydrogels had good biocompatibility and were promising for use as an injectable polymeric scaffold for tissue engineering applications.