Background: Curcuma longa L., commonly known as turmeric has a long history as a medicinal plant. Ancient medicinal practices have been using it for its potent anti-inflammatory, antioxidant, and antimicrobial activities. The primary phytoconstituent, Curcumin exerts significant influence over skin health and the management of dermatological conditions. Its anti-inflammatory and antioxidant attributes ameliorate skin disorders such as acne and psoriasis. Furthermore, this active compound also facilitates collagen synthesis, thereby contributing to skin revitalization and its overall maintenance. Aim and Objectives: This study aimed to formulate, optimize and evaluate a herbal sustained-release topical hydrogel employing Curcuma longa methanolic extract (CE) for improving skin health. Material and Methods: The phytoconstituents in the CE were screened both quantitatively and qualitatively. Following confirmatory tests and method development, a sustained-release hydrogel containing CE was formulated. Further, the pharmacological properties of an enriched CE were explored by performing various in vitro assays. Results: The CE encompassed qualitative identification of several phytoconstituents and quantitative assessment of curcuminoids. CE also exhibited remarkable anti-oxidant properties and anti-inflammatory attributes. The optimized CE containing sustained-release hydrogel showed approximately 90% drug loading with sustained release over 24 hours along with better sun protective capabilities and wound healing efficacy as compared to the pure extract. Conclusion: This research proposes a formulation of a topical hydrogel with a sustained-release profile for the holistic management of several skin-related diseases.