Stem cells are cells with self-renewal, reproductive activity, and multiple differentiation potential. The native cell-extracellular matrix (ECM) is a hydrated network of proteins and polysaccharides that provide the surrounding environment to maintain stem cells. Hydrogels possess broadly tunable biofunctions and adequate mechanical strength, as well as ECM-like conditions for better cellular activity. Hydrogels are considered one of the most utilized and relevant options in terms of mimicking the native ECM .This review article summarizes the recent advances in the field of using hydrogels as a stem cell niche to regulate cell fate from design strategies. Furthermore, we also review how hydrogels regulate stem cell fate and differentiate into hepatocytes. Looking forward, we envision that with the adoption of an increasing number of interdisciplinary methods, it is reasonable to combine multiple strategies to prepare hydrogels with enhanced performance. Due to the special arrangement or interaction between multiple scales and multiple components, a new combination of hydrogels has emerged, which provides opportunities for further innovation of hydrogels in regulating cell fate.