Strain-induced crystallization (SIC) is a well-known toughening strategy in elastomers, but is rarely observed in hydrogels due to their high-water content and limited deformability. Here we report a phenomenon of SIC in highly swollen and associative hydrogels by introducing an extremely large deformation by indentation with a needle. Using in situ birefringence imaging, we discovered that SIC occurs close to the needle tip upon large strain, displacing the nucleation of a crack from the needle tip to a position further away from the tip. The morphology of the fracture as well as the force to induce the gel fracture with the needle can be controlled by playing with temperature and cross-linking and hence triggering or not the SIC. Our discovery points to a future direction in creating SIC in highly swollen hydrogels, with potential implications for many biological material designs, and surgical injury prediction or prevention in associative tissues.