Delivery of protein drugs is highly challenging due to the low permeability, short circulatory half-life, rapid proteolysis, low stability, and immunogenicity of the protein drugs. Studies using polysaccharide hydrogels to overcome these problems are reviewed. The different approaches are divided into four classes: (1) polysaccharide microspheres; (2) polysaccharide-conjugated protein drugs; (3) polysaccharide matrix in protein drug delivery; and (4) microencapsulation of protein drugs. Polysaccharide hydrogels will be useful in the development of controlled release formulations for protein drugs.