The pharmaceutical industry is constantly searching for methods that allow drugs to be delivered as a direct response to a specific stimulus, in which the locus of delivery is in the vicinity of required region. A unique thermo?reversible hydrogel,F127 modified with dimethacrylate (DMA), that can deliver drugs at physiological temperatures was synthesized. Nanoparticles which are specific for targeting human body cancer cell were absorbed by this hydrogel. The toxicity of nanoparticles with different diameters and coating was measured using the MTT assay. It was found thatnanoparticles with smaller diameters and folate coating were most toxic to the cancer cells. The release rate of the nanoparticles from the hydrogel was measured as a function of temperature with the hydrogel releasing approximately 3 Lnanoparticles per hour. Exposing this drug delivery system to cancer cells would effectively inhibit MCF7 cell proliferation. By grafting this nanoparticle?loaded hydrogel onto a thermoelectric module, the release of the drug would be controlled. Thus, a successful temperature sensitive hydrogel was synthesized that releases cancer?targeting nanoparticles which inhibit cancer cell proliferation, thereby engineering a controlled drug delivery system.