Background: Wound healing problems pose a significant clinical challenge for individuals with diabetes, necessitating innovative treatment strategies. Phenyl Boronic Acid-Quercetin (PBA-Q) nanoparticles offer potential benefits due to their antioxidant, anti-inflammatory, and wound-healing properties. Objective: This study aimed to investigate the morphological events associated with wound healing in diabetic rat models treated with PBA-Q nanoparticles ointment. Methods: Male Albino Wistar rats with streptozotocin-induced diabetes were used. Diabetes was confirmed with blood glucose levels exceeding 250 mg/dL. Excisional wounds of 2 cm diameter were created on the dorsum of each rat. The PBA-Q nanoparticles ointment was applied topically on days 3, 7, 11, and 15 post-wounding. Wound contraction was measured using a Vernier caliper, and tissues were collected for histopathological analysis, immunohistochemistry, and electron microscopy. Statistical analysis was performed using SPSS version 25.0. Results: Compared to controls, diabetic rats treated with PBA-Q nanoparticles showed significantly accelerated wound closure by 42% on day 15, enhanced re-epithelialization, increased collagen deposition by 50%, and reduced inflammatory cell infiltration by 60%. Vascularization was notably improved, with a 70% increase in blood vessel formation by day 15. Conclusion: PBA-Q nanoparticles ointment significantly enhanced wound healing in diabetic rats, demonstrating therapeutic potential for diabetic wound management. Further research is needed to validate these findings in human clinical trials.