This manuscript explores the interdisciplinary integration of quantum dot–hydrogel composites and smart materials and their applications across a spectrum of fields, including biomedical engineering, environmental sensing, and energy harvesting. It covers the synthesis of novel materials like fluorescent hydrogel nanocomposites that display enhanced chemical stability, mechanical strength, and thermal resistance, highlighting their utility in environmental monitoring and catalysis. In the biomedical sector, innovations include hydrogel composites for targeted drug delivery and advanced therapies such as photothermal DNA hydrogels for tumor treatment. This review also discusses the application of these materials in imaging, diagnostics, and the development of smart sensors capable of detecting various biological and environmental changes. Its scope further extends to optoelectronics and the design of energy-efficient systems, underscoring the versatile functionalities of hydrogels in modern technological applications. Challenges remain in scaling up these technologies for commercial use and ensuring their long-term stability and safety, necessitating future research focused on sustainable, scalable solutions that can be integrated into existing systems.