The influence of coconut oil (CO) on a gelatin-based film was investigated when used as a potential wound dressing material. There is limited study on CO in protein-based wound dressing materials. Therefore, in this study a self-supporting, continuous and homogenous CO incorporated gelatin-based film was formulated and obtained by solution casting method. The influence of CO on physicochemical and thermal properties of gelatin-based film was also determined. Moreover, the effect CO in gelatin films on cell viability and cell migration was analysed with a preliminary cell culture study. Homogenous dispersion of 10% (w/w) CO was obtained in films when 3% (v/w) Tween 80, a surfactant, was incorporated to 20% (w/w) plasticized gelatin film forming solution. Effect of CO on gelatin-based film was observed via phase separation by scanning electron microscopy analysis. Water uptake of gelatin film with no CO, GE film; and 10% (w/w) CO incorporated GE film, GE-CO, were 320% and 210%, respectively, after 3 h in water. Fourier transform infrared spectroscopy analysis showed triglyceride component of CO and increased hydrogen bonding between NH groups of gelatin in GE-CO films. Differential scanning calorimetry results suggested a more ordered structure of GE-CO film due to an increase in melt-like transition temperature and melting enthalpy of GE-CO film. CO content also increased cell viability, assessed by XTT assay since cell viability was approximately 100% when L929 cell culture was incubated with GE-CO of 5–100 μg ml−1. Moreover, GE-CO samples within 5–25 μg ml−1 concentration range, increased proliferation of L929 cells since cell viability was significantly higher than the 100% viable cell culture control (P < 0.05) which is also an indication of efficient healing. However, GE decreased viability of L929 cells significantly at 100–10 μg ml−1 concentration range (P < 0.05) and were toxic at concentrations of 100, 75 and 50 μg ml−1 which decreased ∼50% of the viability of the cells. Scratch Assay to assess in vitro wound healing showed cell migration towards scratch after 24 h as an indication of wound healing only in GE-CO samples. This study showed that, CO could efficiently be added to gelatin-based films for preparation of a primary wound dressing biomaterial which is also demonstrated to have a promising wound healing effect for minor wounds.