Hydrogels with enhanced biocompatibility and biostability were prepared by copolymerization of 2-hydroxyethyl methacrylate (HEMA) and sodium methacrylate (SMA) at high monomer concentration to replace a sponge which has limited applications as an implant material. It was found that incorporation of SMA moiety suppressed cytotoxicity. P(HEMA-co-SMA) hydrogel prepared at SMA feed ratio of 0.05 showed minimal cytotoxicity as compared with a normal cell culture plate. The adhesion and the spreading of cells were preferred on the surface of the hydrogel prepared with SMA feed ratio of 0.01. On the other hand, the hydrogel prepared with SMA feed ratio of 0.05 showed lower cell adhesion. Histological findings revealed no evidence of significant foreign body reaction in the tissues around the copolymer hydrogels. Conclusively, it is suggested that the hydrogels prepared by copolymerization of HEMA and SMA at high monomer concentration are strong candidates for an implant material with excellent biocompatibility and biostability.