Varying physico-chemical properties of synthetic hydrogels and introducing additives can induce a cell interactive response of hydrogels. Hydrogels were developed based on acrylate-endcapped urethane-based poly (ethylene glycol) precursors with varying backbone molecular weight (2000-8000 g/mol), in combination with the nanoclay Laponite to explore effects on swelling, mechanical and in vitro biological properties. The combined effect of molecular weight and Laponite concentration enables the development of hybrid materials useful for different biomedical applications. Gel fractions approximating 100% along with tunable swelling (4-11 g/g polymer) and mechanical properties (Young's Modulus 0.1-0.6 MPa) are obtained. All materials are non-cytotoxic and AUPs without Laponite are non cell-interative rendering them suitable for non-adherent biomedical applications. Hydrogels composed of Laponite (0.5 or 1 wt%) and PEG backbone molecular weight of 2000 g/ mol promote cell proliferation useful to function as synthetic dermal matrices or scaffolds for tissue engineering applications.