The design of hydrogels with self-healing properties represents a significant advancement in the biomedical field. Polysaccharide-based self-healing hydrogels have garnered attention because of their unique attributes, including biocompatibility and biodegradability, as well as their ability to autonomously repair damage. Polysaccharide-based self-healing hydrogels consist mainly of crosslinked hydrophilic polymer networks that mimic the self-repair mechanisms of biological tissues. This review examines the self-healing mechanisms of polysaccharide-based hydrogels, evaluates their healing ability, and discusses characterization techniques to quantify their healing efficiency. In addition, the review highlights the advantages of self-healing hydrogels and discusses potential applications, particularly in the areas, such as medical dressings, drug delivery, and tissue regeneration. By addressing the challenges of self-healing hydrogels, these materials represent a promising frontier in the field of advanced biomaterials.