In this paper, recent developments in the chemical design of functional microgels are summarized. A wide range of available synthetic methods allows the incorporation of various reactive groups, charges, or biological markers inside the microgel network, thus controlling the deformation and swelling degree of the resulting smart microgels. These microgels can respond to various stimuli, such as temperature, pH, light, electric field, etc. and can show unique deformation behavior at the interface. Due to their switchability and interfacial properties, these smart microgels are being extensively explored for various applications, such as antifouling coatings, cell encapsulation, catalysis, controlled drug delivery, and tissue engineering.