The wound has been recognised as a deep cut or tearing of the epidermis, which is also referred to as trauma and harm to the body tissues. Healing of wounds requires a coordinated series of cellular processes, including cell attraction, proliferation, differentiation, and angiogenesis. These processes involve interactions between various cells, such as macrophages, endothelial cells, keratinocytes, fibroblasts, growth hormones, and proteases. The outcome of wounds can be fatal if not treated properly, resulting in chronic wounds, chronic pain, and even death. Wound healing is replacing missing tissue with tissue repairs and regeneration. Some local variables are the presence of tissue maceration, foreign objects, biofilm, hypoxia, ischemia, and wound infection. Sustained growth factor delivery, siRNA delivery, micro-RNA targeting, and stem cell therapy are all emerging possible therapeutic approaches for wound healing. Traditional approaches, such as Ayurveda, Siddha, and Unani medicines, are also being used for treatment. The therapeutic application of nanoformulations in wound infections has shown various beneficial effects. Several herbal medicines, especially essential oils have shown potential wound healing activities, such as lavender, tea tree, sesame, olive, etc. Various nanoparticles and their nanoformulations have been explored in wound healing therapy. The present review article highlights several aspects of essential oils for wound healing activity through a novel drug delivery system. Further, some patents on wound healing through herbal medicine have been listed.