Abstract Type 1 Diabetes (T1D) is characterized by autoimmune destruction of pancreatic beta cells, resulting in insulin deficiency. Natural‐based biomaterials like collagen offer promising avenues mimicking tissue microenvironments. However, limited research has been conducted on crosslinked collagen microgels with vascular endothelial growth factor (VEGF) and their effects on biomaterial stability and beta cell function. The aim is to synthesize functionalized‐VEGF collagen microgels that mimic the pancreatic environment to sustain pancreatic beta cells for diabetes therapy. Physicochemical analysis confirms the incorporation of functional groups and structural stability over time. Mechanical testing shows adequate resistance to deformation. Metabolic activity increases after 48 h of incubation for the 1 and 3 ng mL −1 VEGF concentrations, as demonstrated by enzymatic and microscopic assays. DNA quantification confirms enhanced cell proliferation at 72 h across all VEGF concentrations. Further analysis shows that VEGF microgels can maintain oxygen consumption and insulin secretion under glucose stimulation of pancreatic beta cells. These findings highlight the intrinsic advantages of collagen‐based platforms for cell support and suggest their potential for translational applications. Future studies will focus on molecular‐level interactions and in vivo validation, placing this strategy as a promising candidate for advanced diabetes therapy.