Abstract: The management of chronic wounds in diabetic patients is a tough challenge, compounded by elevated amputation rates, frequent recurrence, and increased mortality rates. Nonhealing wounds in people with diabetes are produced by a combination of variables that impede the clearance of injured tissue, stimulate the formation of healthy cell populations, and increase the risk of infection. Traditional wound dressings, such as gauze, films, and bandages, focused solely on hydration and infection prev ention. However, recent scientific investigation has shifted toward advancements in wound healing treatments to overcome the constraints inherent in old methodologies. Hydrogel dressings have surfaced as a particularly enticing and promising avenue for increasing wound healing prowess in the modern medical environment, owing to their remarkable ability for moisture retention, biocompatibility profiles, and therapeutic attributes. The pathophysiology of diabetes wounds has been better studied in recent decades, and a range of functionalized hydrogel dressings have been reported with favourable outcomes, indicating that they have significant potential in healing diabetic wounds. Our approach will comprise a systematic and comprehensive evaluation of the advancements in hydrogel dressing methods related to diabetic wounds. This review presents a strong theoretical foundation for advancing hydrogel dressing technologies and offers suggestions for treating diabetic wound-related problems.