Objective(s): Basal cell carcinoma (BCC) is the most common form of skin cancer and the most frequently occurring form of all cancers, affecting sun-exposed areas like the face. Surgery is the main treatment, focusing on safe and minimally invasive methods for better outcomes. Technology has enabled the development of artificial skin substitutes for tissue repair. Tissue engineering uses scaffolds to create functional replacements. This project aims to create an alginate-based hydrogel with PEG-coated gold nanoparticles. Materials and Methods: The project extensively explored the modification of alginate hydrogels with PEG-coated gold nanoparticles, involving the synthesis of gold nanoparticles, their integration with the polymer, and the subsequent preparation of the concentrated hybrid hydrogel. Utilizing various physicochemical techniques, such as UV-visible spectroscopy, transmission electron microscopy, dynamic light scattering, zeta potential analysis, scanning electron microscopy, and Fourier transform infrared spectroscopy, the fabrication process was optimized and characterized. Results: The successful synthesis of the hybrid biomaterial was achieved through robust and highly reproducible methods. The MTT assay results offered valuable insights into the biocompatibility and safety of the PEG-coated gold nanoparticle-loaded alginate-based films. The incorporation of PEG-coated gold nanoparticles allowed for potential drug loading on the nanoparticle surface and, consequently, within the hydrogel. Cellular assays were conducted to assess the potential applications of this novel biomaterial. Conclusion: The addition of polyethylene glycol made it possible to load different drugs onto the gold nanoparticles and also within the hydrogel. This makes it a promising choice for potential uses in tissue engineering.