Microfluidic devices based on droplets can generate narrow size distribution droplets with precise size control and customize the overall structure of droplets to fulfill the ideal capacity. This methodology can be applied to a wide variety of fields. Complete reproduction and activation of the actual microenvironment with sturdiness is the critical goal of the in vitro cell culture technique, as the three-dimensional (3D) cell culture seem, by all accounts, to be more powerful than the ordinary two-dimensional (2D) approach because of better endeavors to imitate the in vivo microenvironment of cells. In tissue engineer and regenerative medicine, droplet-based microfluidics is an empowering method to tackle different issues. The polymer lattices of these microgels go about as powerful extra cellular matrices (ECM) and give an obvious 3D platform for cell culture, which advances cell-cell communications and improves their capacities. Droplet-based microfluidics has shown enormous potential for numerous applications, such as drug screening and cell encapsulation, due to the excellent biophysical and biochemical properties of microgels. In biology and medicine, hybrid systems are widely discussed for their various applications, advantages, and challenges. We are planning to incorporate an outline of Droplet-based microfluidics and cell encapsulation approaches all through this article.