Wound repair is a complex phenomenon of dermal and epidermal tissue regeneration, consisting of several phases including haemostasis, inflammation, migration, proliferation, and remodelling. The wound management procedures have evolved from ancient times that used honey, plant fibres, and animal fats to biopolymers. With the emergence of modern wound dressings, the wound healing process has been accelerated with extraordinary properties of dressing material. The dressings material contacts with the wound and provides optimal conditions, for example, moist environment, absorption of excessive exudates, and permeability to gaseous exchange, etc., for healing. The main purpose of dressing is to stop the bleeding, prevention of exsanguination, protection from infection, and renewal of function. With the myriad of dressing types available in the clinical settings such as hydrogels, hydrocolloids, alginates, and anti-microbial-impregnated dressing, etc., the understanding behind the usage of a particular dressing for a specific wound type remains conjectural. In this comprehensive review, we first discussed the wound repair process in brief followed by wound dressing, characteristics of ideal wound dressing, and its categorization. This review aims to provide a state-of-the-art overview of different aspects of wound dressing type contributing to the effective treatment of particular skin wounds.