Wounds represent a "silent epidemic" in the global population that impact significantly people's quality of life and the economy of societies. Owing to the numerous therapies, the pursuit of a perfect wound dressing with superior performance for treating all sorts of wounds is still underway. Several studies have shown the potential of integrating restorative peptides into the scaffolds as potential therapeutic candidates for wound healing. So far, there is little information about the wound-healing effect of S-acetamidomethyl Cys 20-31-EGF peptide, a main fragment of epidermal growth factor. In this regard, the effectiveness of this peptide in the alginate-gum arabic polysaccharide hydrogel was evaluated as a wound dressing (AG-P). Physicochemical evaluation of the hydrogels demonstrated that the incorporation of the peptide compressed the hydrogel network due to the presence of hydrogen and electrostatic bonds without significant effect on the mechanical, viscoelastic properties, swelling and degradation rate of the hydrogel. The hydrogel could continuously release the peptide and prevent rapid attenuation of its concentration. Cellular assessment of AG-P by scratch test and CFSE cytoplasmic dye/flow cytometry technique encouraged the migration and proliferation of human fibroblast cells, respectively. The effect of the AG-P on the expression of IL-6, TNF-α, NF-kB1 and VEGF genes indicated that this hydrogel reduced inflammation, and significantly increased angiogenesis compared to the control group based on the Real-time PCR results. In vitro assessment indicated that this structure can promote efficient and faster wound regeneration by altering the microenvironment of the wound. The hydrogel showed interesting features to be more equipped with other therapeutic agents making it as suitable dressing for various type of the wounds.