Self-healing hydrogels are well-known for their biocompatibility and dynamic networks, and have been considered as new generation smart materials for biomedical applications. However, developing self-healing hydrogels with additional functions through molecular redesign is often complex and costly. Integrating functional nanomaterials with self-healing hydrogels offers a straightforward and efficient strategy to develop new functional self-healing hydrogels. This mini-review focuses on recent advances in self-healing hydrogels functionalized with nanomaterials. It categorizes and discusses these composite materials based on their emerging functions, including wound dressing, tissue engineering, adhesives, magnetic hydrogels, flow management and conductive/sensing systems. The mechanisms of nanomaterial integration, the resulting enhanced properties, and the synergistic performance advantages are discussed. Finally, future perspectives on exploring new functions and potential application scenarios for these nanocomposite hydrogels are presented.