Stem cell-based regimens have evolved as a promising approach to cartilage reparations. Research efforts in this realm aim to enhance the therapeutic capabilities of stem cells and develop more effective cell delivery strategies. Herein, we present novel dental pulp stem cells (DPSCs)-loaded kartogenin-modified hydrogel microspheres with chondrocyte differentiation property for temporomandibular joint (TMJ) osteoarthritis treatment. Leveraging microfluidic technology, DPSCs were successfully encapsulated in hydrogel microspheres, serving as the pivotal contributors to cartilage repair. By modifying the hydrogel with kartogenin, these microspheres facilitated sustained stimulation of DPSCs’ chondrogenic differentiation. In vitro experimental results revealed that the DPSCs exhibited advanced cartilage-forming differentiation, as evidenced by the up-regulation of relative gene expressions and protein markers. Additionally, the DPSCs-loaded microspheres system displayed a capacity to regenerate and repair tissue at the cartilage defects in a TMJ osteoarthritis animal model. Thus, the DPSCs-loaded kartogenin-modified hydrogel microspheres exhibit significant promise for cartilage repair, showcasing the substantial potential for future clinical applications.