Osteoarthritis (OA) is a chronic condition characterized by degeneration of the articular cartilage and subsequent bone hyperplasia. With the increasing prevalence driven by factors such as aging and obesity, OA poses a growing health and economic burden. Current treatments, including NSAIDs and corticosteroid injections, offer limited efficacy and often result in adverse effects, highlighting the urgent need for novel therapeutic approaches. Emerging research has identified hydrogel microspheres as a promising solution for OA management. These microspheres, with their tunable physicochemical properties and biocompatibility, provide a conducive environment for cartilage regeneration and sustained drug delivery. Unlike bulk hydrogels, microspheres offer enhanced injectability, uniform distribution, and reduced tissue damage. This review discusses the recent advancements in hydrogel microsphere technology, focusing on their fabrication, unique mechanisms, and therapeutic applications in OA. Additionally, we address the challenges and future directions for clinical translation, with the aim to optimize the efficacy of hydrogel microspheres in OA treatment.