As a common natural phenomenon, phase separation is exploited for the development of high-performance hydrogels. Using supersaturated salt to create microphase-separated hydrogels with strengthened mechanical properties has gained widespread attention. However, such strengthened hydrogel loses its intrinsic flexibility, making the phase separation strategy unsuitable for the fabrication of stretchable and tough hydrogels. Here, a phase-engineering design strategy is introduced to produce stretchable yet tough hydrogels using supersaturated NaAc salt, by leveraging the hydration effect of cellulose nanocrystal (CNC) to mitigate microphase separation. The CNC-mitigated microphase-separated hydrogel presents unprecedented mechanical properties, for example, tensile strength of 1.8 MPa with a fracture strain of 4730%, toughness of 43.1 MJ m