Regenerative medicine seeks to assess how materials fundamentally affect cellular functions to improve retaining, restoring, and revitalizing damaged tissues and cancer therapy. As potential candidates in regenerative medicine, hydrogels have attracted much attention due to mimicking of native cell-extracellular matrix (ECM) in cell biology, tissue engineering, and drug screening over the past two decades. In addition, hydrogels with a high capacity for drug loading and sustained release profile are applicable in drug delivery systems. Recently, self-healing supramolecular hydrogels, as a novel class of biomaterials, are being used in preclinical trials with benefits such as biocompatibility, native tissue mimicry, and injectability via a reversible crosslink. Meanwhile, the localized therapeutics agent delivery is beneficial due to the ability to deliver more doses of therapeutic agents to the targeted site and the ability to overcome post-surgical complications, inflammation, and infections. These highly potential materials can help address the limitations of current drug delivery systems and the high clinical demand for customized drug release systems. To this aim, the current review presents the state-of-the-art progress of multifunctional and self-healable hydrogels for a broad range of applications in cancer therapy, tissue engineering, and regenerative medicine.