Under γ‐irradiation, concentrated collagen solutions yielded collagen hydrogels and liquid products. The molecular structure of collagen hydrogels and the source of the liquid products were studied. Furthermore, preliminary biological properties of the hydrogels were investigated. The results revealed that crosslinking occurred to form collagen hydrogel and the crosslinking density increased with the increasing of the absorbed dose, and the collagen hydrogels showed enhanced mechanical properties. Meanwhile, collagen underwent radiation degradation and water was squeezed out from hydrogel by contraction of hydrogel, yielding liquid products. Collagen hydrogels induced by γ‐irradiation maintained the backbone structure of collagen, and tyrosine partially involved in crosslinking. The irradiated collagen hydrogels have higher denatured temperature, can promote fibroblasts proliferation, and their degradation rate in vivo depended on the absorbed dose. The comprehensive results suggested that the collagen hydrogels prepared by radiation crosslinking preserved the triple helical conformation, possessed improved thermal stability and mechanical properties, excellent biocompatibility, which is expected to favor its application as biomaterials. © 2012 Wiley Periodicals, Inc. J Biomed Mater Res Part A: 100A:2960–2969, 2012.