Hydrogels are an important class of soft materials with high water retention that exhibit intelligent and elastic properties and have promising applications in the fields of biomaterials, soft machines, and artificial tissue. However, the low mechanical strength and limited functions of traditional chemically cross-linked hydrogels restrict their further applications. Natural materials that consist of stiff and soft components exhibit high mechanical strength and functionality. Among artificial soft materials, nanocomposite hydrogels are analogous to these natural materials because of the synergistic effects of nanoparticle (NP) polymers in hydrogels construction. In this article, the structural design and properties of nanocomposite hydrogels are summarized. Furthermore, along with the development of nanocomposite hydrogel-based devices, the shaping and potential applications of hydrogel devices in recent years are highlighted. The influence of the interactions between NPs and polymers on the dispersion as well as the structural stability of nanocomposite hydrogels is discussed, and the novel stimuli-responsive properties induced by the synergies between functional NPs and polymeric networks are reviewed. Finally, recent progress in the preparation and applications of nanocomposite hydrogels is highlighted. Interest in this field is growing, and the future and prospects of nanocomposite hydrogels are also reviewed.