Tissue engineering is an important field of regenerative medicine, which combines scaffolds and cell transplantation to develop substitute tissues and/or promote tissue regeneration. Hydrogels, a three-dimensional network with high water content and biocompatibility, have been widely used as scaffolds to mimic the structure and properties of tissues. However, the low mechanical strength and limited functions of traditional hydrogels greatly limited their applications in tissue engineering. Recently, nanocomposite hydrogels, with its advantages of high mechanical property and some unique properties (such as electrical conductivity, antibacterial, antioxidation, magnetic responsiveness), have emerged as the most versatile and innovative technology, which provides a new opportunity as a unique tool for fabricating hydrogels with excellent properties. In this review, we summarize the recent advances in fabricating nanocomposite hydrogels and their applications in tissue engineering. In addition, the future and prospects of nanocomposite hydrogels for tissue engineering are also discussed.