Anisotropic nanocomposite hydrogel materials are created using a process in which a hydrogel-forming material is crosslinked in the presence of nanoscale cellulose and subsequently thermally cycled under an applied tensile strain. Such materials are capable of exhibiting high mechanical and viscoelastic anisotropy, increased stiffness when subjected to large strain, and are suitable for a broad range of soft tissue replacement applications. In addition controlled release of bioactive agents properties can be designed into medical devices fabricated from such nanocomposite materials.