Hydrogel materials have been used extensively in microbial electrochemical technology (MET) and sensor development due to their high biocompatibility and low toxicity. With an increasing demand for sensors across different sectors, it is crucial to understand the current state within the sectors of hydrogel METs and sensors. Surprisingly, a systematic review examining the application of hydrogel-based METs to sensor technologies has not yet been conducted. This review aimed to identify the current research progress surrounding the incorporation of hydrogels within METs and sensors development, with a specific focus on microbial fuel cells (MFCs) and microbial electrolysis cells (MECs). The manufacturing process/cost, operational performance, analysis accuracy and stability of typical hydrogel materials in METs and sensors were summarised and analysed. The current challenges facing the technology as well as potential direction for future research were also discussed. This review will substantially promote the understanding of hydrogel materials used in METs and benefit the development of electrochemical biosensors using hydrogel-based METs.