Levan is a fructose-based homopolysaccharide renowned for its unique properties, including exceptional adhesive strength, self-assembly capability, low viscosity, and bioactivities such as prebiotic, anti-cancer, anti-inflammatory, and anti-diabetic effects. These characteristics have created increasing interest in levan-based biomaterials over the past decade, positioning levan as a highly under-explored biopolymer for a wide range of applications, from medicine to cosmetics. As a result, levan-based hydrogels have emerged as promising biomaterials in drug delivery, tissue engineering, and cosmetic formulations, owing to their extracellular matrix-mimicking structure, tunable mechanical properties, and controlled cargo release capabilities. This review is the first to comprehensively examine the advancements in levan-based hydrogel research, systematically analyzing their biomedical applications and comparing them with other biopolymer-based hydrogels. Key questions regarding levan's potential as an alternative to established hydrogel systems are explored, highlighting areas requiring further research. By assessing trends and findings in the literature, this review provides an overview of the advantages, limitations, and prospects of levan hydrogels. Our analysis establishes a foundation for the continued development of levan-derived biomaterials, fostering broader adoption in biomedical and industrial applications.