Urban agriculture plays a vital role in ensuring the self-sufficiency of a great variety of fresh vegetables and nutrients. It promotes a sustainable food system as well as reducing the dependency on imports for the growing population. Urban farming has made it possible for agriculture practices to be implemented anywhere at any time in a sophisticated way. Hydrogel has been introduced in urban agriculture in the past few decades. However, the application of hydrogel in urban agriculture is still being explored in terms of hydrogel types, structure, physical and chemical properties, change due to external factors, and its suitability for different plant species. This review discusses the potentials and limitations of hydrogel in different application conditions. We present the state of knowledge on hydrogel production and crosslinking methods, hydrogel characteristics, water absorption and release mechanisms of hydrogel, hydrogel advantages and limitations, and current and future applications in urban farming.