In this paper, we study the rehydration properties of air-dried calcium alginate gel beads. Rehydration is shown to depend on alginate source (i.e. mannuronic to guluronic acid ratio) and the salt concentration in the rehydration medium. Rehydration curves are described adequately by the empirical Weibull equation. Wide-angle X-ray diffraction measurements are performed to obtain information on the microstructure of dried alginate gels. The X-ray diffraction patterns provide evidence for formation of ordered domains in which alginate polymers are laterally associated. Formation of ordered structures during drying is found to have a large impact on rehydration properties. Lateral association of alginate chains is reduced (and rehydration improved) by removing excess calcium ions from the gel beads in a washing step prior to air drying. In addition, rehydration properties of mixed alginate–carboxymethyl cellulose (CMC) gel beads are investigated. The presence of CMC in the gel matrix is found to reduce lateral association of alginate chains during drying and to improve rehydration properties.