In recent years, due to their good physical and chemical properties, nanocomposite hydrogels have shown great application potential in the fields of biomedicine, sensors, 3D printing, and water pollution control. Compared with pure polymer hydrogels, the superior performance of nanocomposite hydrogels is mainly due to the influence of nanomaterials on the internal structure and composition of the hydrogels. In this paper, starting from the basic properties required for practical applications of hydrogels, the influence of nanomaterials on the different properties of hydrogels is discussed. Meanwhile, this paper reviews the research status of nanocomposite hydrogels in different application fields, and emphasizes the challenges and development prospects of nanocomposite hydrogel applications.