Degenerative joint diseases, as a global public health issue, impose significant burdens on patients’ lives and substantial economic costs on society. Currently, the primary modalities include physical therapy, pharmaceutical intervention, and surgical procedures. None of these approaches can alter the course of this degenerative process. Due to their commendable biocompatibility, biodegradability, and heightened efficacy in drug delivery, hydrogels present themselves as a novel noninvasive remedy for degenerative joint ailments. However, the clinical application of hydrogels still faces some challenges, including the uncontrolled discharge of encapsulated medications, the absence of adequate mechanical reinforcement for destabilized joints, and adaptability to fluctuating microenvironments. Recently, nanocomposite hydrogels, formed by introducing nanomaterials into hydrogels by physical or chemical means, can improve the limitations of hydrogels and extend their potential for biological applications in degenerative joint diseases. In this study, the pathologic features of degenerative joint diseases and the multiple applications of different types of nanocomposite hydrogels in targeting these different pathologic features are briefly described. It also concludes with an outlook on the use of nanocomposite hydrogels in clinical settings and discusses their challenges and limitations.