Methylcellulose (MC) is an attractive material used to produce thermo-responsive hydrogels. They undergo sol-gel transition when a critical temperature is reached, thus modifying their properties (e.g., physicochemical and mechanical) in response to temperature changes. This behavior is particularly attractive when the body temperature acts as a trigger to modulate the thermo-responsive behavior of MC hydrogels. In this regard, exciting advances have been achieved in the field of cell and drug delivery, tissue engineering, and regenerative medicine, making MC a very attractive and versatile biomaterial. This review aims to present MC hydrogels, examining their preparation, physical properties, and tunability of thermal response, lastly moving to a comprehensive depiction of both their conventional and innovative applications for tissue regeneration purposes. In particular, three main families of applications are introduced: (1) in situ gelling systems, which undergo sol-gel transition upon delivery into a target site (e.g., tissue or organ), assisting the regeneration of the latter both in the presence or absence of loading components (e.g., cells, biomolecules, and inorganic materials); (2) three-dimensional (3D) (bio)printing, where the sol-gel transition is induced by heating MC-based (bio)inks after printing, obtaining 3D tissue-engineered substitutes with defined geometries and high shape fidelity; (3) smart culture surfaces, where the hydrophilic/hydrophobic transition of MC is exploited to reach a selective attachment/detachment of cells, offering the possibility to obtain cell sheets and cell bodies for tissue reconstruction without the need of any proteolytic enzyme. The main limitations of MC hydrogels will be then examined, together with current solutions to overcome them. Moreover, an overview of the future directions in the field of MC smart hydrogels will be given, with particular focus on the design of multiresponsive systems capable to respond to multiple stimuli (e.g., chemical and biological stimuli), toward the development of more patient-specific treatments. Finally, an overview of the patents and clinical trials describing the use of MC will be given, retracing the abovementioned families of application.