Recent advancements in biomedical applications have highlighted the need for nontoxic and organic materials with versatile capabilities. Silver nanoparticles (AgNPs) have emerged as a promising antimicrobial agent due to their exceptional physicochemical properties, whereas hydrogels offer potential applications in biomedicine due to their biocompatibility, biodegradability, and hydrophilicity. AgNPs‐infused hydrogel can offer synergistic approach for various biomedical applications, specifically in wound healing, drug delivery, and antimicrobial coatings. The incorporation of AgNPs into the hydrogel enhances their antimicrobial properties, making them ideal for reducing infections and promoting tissue regeneration. Furthermore, AgNPs‐infused hydrogel can serve as controlled‐release systems for therapeutic agents, which ensures sustained and targeted drug delivery. Most importantly, this type of system offers a potential pathway for overcoming the challenges posed by traditional materials. While AgNPs‐infused hydrogel offer significant advantages for various biomedical applications, challenges such as potential cytotoxicity, environmental concerns, and long‐term effects require further investigation. Overall, this review comprehensively explores the synthesis methods, properties, applications, and challenges associated with AgNPs‐infused hydrogel.