Photothermal hydrogels (PTHs) are considered next‐generation biomaterials as they offer remotely defined biophysical information of the extracellular milieu. PTHs allow precise and non‐genetic control for the regeneration of native tissues, which is the ultimate goal of tissue engineering (TE). Molecular and physical properties of PTHs, such as components, structural configurations, and mechanical characteristics, collectively serve as determinants for understanding the dynamic tissue response and clinical translation. PTHs have entered a period of fruition due to the development of numerous manufacturing technologies and polymeric matrices. Herein, this review comprehensively and meticulously elucidates the mechanisms of regenerative therapeutics underlying the design and fabrication of PTHs. Recent advances in the photothermal principles and various categories of photothermal agents (PTAs) have been extensively discussed. Vital components and structures of PTHs are summarized to enable efficacious and precise therapeutic energy delivery. Emerging applications of PTHs in TE are also demonstrated, which expand the strategies for the intrinsic regeneration of injured tissues. Then deliberate the structural and chemical engineering of PTHs to enhance prognosis while highlighting the challenges associated with clinical translation. In this review, we aim to provide guidance and prospects for exploration and innovation of PTHs in the field of TE.