An appropriate operating temperature range is critical for the overall performance and safety of lithium-ion batteries. Considering the excellent performance of water in heat dissipation in industrial applications, in this paper, a water based PAAS (sodium polyacrylate) hydrogel thermal management system has been proposed to handle the heat surge during the operation of a Li-ion battery pack. A thermal model with constant heat generation rate is employed to simulate the high current discharge process (i.e., 10 A) on a 4S1P battery pack, which shows a good consistence with the corresponding experimental results. Further experiments on 4S1P and 5S1P battery packs validate the effectiveness of the hydrogel thermal management system in lowering the temperature increase rate of battery packs at different discharge rates and minimizing the temperature difference inside battery packs during operation, thereby enhancing the stability and safety in continuous charge and discharge process and decreasing the capacity fading rate during life cycle tests. This novel hydrogel based cooling system also possesses the characteristics of high energy efficiency, easy manufacturing process, compactness, and low cost.