Addressing the global challenges of plastic pollution and sustainable development necessitates the innovation of eco-friendly food packaging materials. Hydrogels, particularly those derived from natural polymers, have emerged as promising alternatives to conventional plastics due to their biodegradability, biocompatibility, and potential for multifunctional integration. This review systematically summarizes recent advances in multifunctional hydrogels for food packaging. It begins with an overview of key substrates (e.g., polysaccharides, proteins) and their composite strategies, followed by an explanation of physical and chemical crosslinking methods for constructing stable networks. The review then focuses on functional design strategies, including mechanical enhancement via nanocomposites and double-network structures, as well as the realization of active preservation and visual freshness monitoring through the incorporation of antimicrobials, antioxidants, and smart responsive agents (e.g., pH-indicating pigments). Furthermore, it assesses the suitability of green processing techniques such as solution casting, electrospinning, and 3D printing. The significant efficacy of hydrogel packaging in extending the shelf life of fresh produce, aquatic products, and meats is illustrated through application cases. Finally, current challenges regarding mechanical strength, moisture resistance, cost, and scalable production are analyzed, and future perspectives are outlined, aiming to inform the development of next-generation sustainable and intelligent packaging systems.