Photopolymerizing hydrogel systems provide a method to encapsulate cells and implant materials in a minimally invasive manner. Controlled release of growth factors in the hydrogels may enhance the ability to engineer tissues. IGF‐I and TGF‐β were loaded in PLGA microspheres using a double emulsion technique. 125 ng and 200 pg of active IGF‐I and TGF‐β, respectively, as measured by ELISA, were released over 15 days. The growth factor containing microspheres were photoencapsulated with bovine articular chondrocytes in PEO‐based hydrogels and incubated in vitro for two weeks. Statistically significant changes in glycosaminoglycan (GAG) production compared to control gels either without microspheres or with blank spheres were observed after a 14 day incubation with IGF‐I and IGF‐I/TGF‐β microspheres combined, with a maximum density of 8.41 ± 2.5% wet weight GAG. Total collagen density …