Delayed wound healing are common complications for diabetic patients. In light of chronic hypoxia's delay in wound healing, it is hypothesized that providing a better oxygen environment at the wound site will promote diabetic wound healing. OXY-ExoAloe is an innovative and effective therapy prepared from exosome-like vesicles of aloe vera gel, ginger juice and neem fruit sap. A combination of three herbal, oxygen-delivering and medicinally valued plants was standardized to determine if the combination had the desired effect. Interestingly, when we used OXY-ExoAloe at a particular ratio on a diabetic wound, the herbal therapy speeded up wound healing by reducing swelling, and the severity of the wound. Further, our data suggests that OXY-ExoAloe promoted wound healing by increasing wound oxygenation, reducing inflammation, cytokine production, and matrix remodeling. It is also safe and effective, with no reported side effects.