Biopolymer hydrogels have emerged as a transformative technology for enhancing the stability, delivery, and efficacy of probiotics in food systems. These hydrogels provide robust protection against environmental stressors such as pH fluctuations, temperature extremes, and moisture, ensuring probiotic survival during processing, storage, and digestion. Their versatility allows for seamless integration into a wide range of food matrices, including beverages, baked goods, and plant-based products, resolving the growing consumer demand for functional foods that promote gut health. This review explores the potential of biopolymer hydrogels in probiotic encapsulation, emphasizing their role in controlled release and targeted delivery within the gastrointestinal tract. Despite their advantages, hurdles remain in optimizing formulations, refining encapsulation techniques, and expanding their application to non-traditional food systems. Future research should focus on strain-specific hydrogel designs, innovative probiotic carriers, and advanced delivery mechanisms to maximize probiotic functionality. From an industrial and commercial perspective, continued advancements in hydrogel technology could revolutionize the functional food and nutraceutical industries. By improving probiotic stability and bioavailability, biopolymer hydrogels present a promising avenue for developing next-generation health-promoting foods. This review highlights the latest advancements in hydrogel technology and its applications, underscoring its potential to shape the future of functional foods and contribute to a more sustainable and health-conscious food industry.