Chronic wounds, particularly those infected with multidrug-resistant (MDR) pathogens, present significant challenges for effective healing. Silver nanoparticles (AgNPs) have been recognized for their antibacterial effects and hence used in the preparation of wound dressings. Curcuma aromatica (CA) is known for its wound-healing properties. Expecting synergistic action of AgNPs and phytochemicals capped on it, CAAgNPs synthesized using aqueous rhizome extract of CA were incorporated in a chitosan (CS) dressing (CAAgNPs/CS). Field emission scanning electron microscopy and Fourier-transform infrared spectroscopy demonstrated the porous nature and a shift in peak intensity from 1589.06 to 1575.54 cm-1 for CAAgNPs/CS dressing confirming crosslinking with glutaraldehyde. Disc diffusion assay displayed antibacterial activity against isolates of Pseudomonas aeruginosa and Staphylococcus aureus. CAAgNPs/CS dressings tested for wound healing in Wistar rats were divided into six groups- wound control, CS, CAAgNPs256/CS, CAAgNPs512/CS, CAAgNPs1024/CS, and commercial dressings. Histological examination and direct red-80 staining demonstrated maximum epithelization and collagen deposition (58.02%) within CAAgNPs1024/CS groups on day 10. Increased hydroxyproline levels (76.51 µg/mL) on day 7 for CAAgNPs1024/CS indicated maximum collagen formation. Reduced levels of inflammatory responses (IL-6; TNF-α) on day 10 indicated quick wound healing without scar formation and damaging effects. The present study highlights the antibacterial and anti-inflammatory CAAgNPs1024/CS dressings with the potential for safe wound healing applications.