In the present study, we report the synthesis of two different Kegging-type polyoxometalates (POMs), ammonium heptamolybdate (AHM) and phosphotungstic acid (PWA), loaded hydrogel beads formed from chitosan (Chi), chitosan/methylcellulose (Chi/MC) and chitosan/ gelatin (Chi/Gel). The addition of negatively charged POMs results in cross-linking between positively charged chitosan chains through electrostatic attraction. Fourier transform infrared spectroscopy, scanning electron microscopy, and thermal gravimetric analysis were used to characterize the as-prepared hydrogel beads. Rheological measurements provided the mechanical and self-healing properties. Swelling properties of the as-prepared hydrogels were determined at pH 6.8, showing a maximum swellabilty of around 4000% in the case of chitosan/gelatin-PWA composite hydrogel. The hydrogels showed low cytotoxicity on HeLa cancer cells but became significant at higher dose levels. The embedded POMs within the biopolymer hydrogel beads had a significant enhancement of their antibacterial action against Gram-negative bacteria Escherichia coli and Gram-positive bacteria Staphylococcus aureus. The hydrogel beads containing AHM showed reversible photochromic properties with rapid UV detection and inkless erasable printing properties. The hydrogel beads had a significant catalytic effect on the reaction of o-phenylenediamine and aldehydes employing hydrogen peroxide as an oxidant under ultrasound irradiation at room temperature. These results show that the POM-hydrogel (as-prepared) beads had significant potential as functional soft materials in different application areas like catalysis, photochromism, UV sensing, and the development of antibacterial soft systems.