Skin ulcers associated with significant bleeding and bacterial infections can be life-threatening and pose significant challenges in clinical settings. To solve this problem, there is an increasing need for biomaterials that have hemostatic and antibacterial properties. Such biomaterials are highly desirable as they could help to promote wound healing and prevent infections, thus improving patient therapeutic outcomes. Inspired by this content, a new type of nanocomposite sponge based on sodium alginate (SA) and polyvinyl alcohol (PVA) was created with the combination of carbon dots (CDs) and woolly hedge nettle extract (HNE) as an antibacterial and hemostatic wound dressing. The prepared samples were characterized by different techniques. The properties of CDs were determined by FT-IR and XRD. SEM confirmed the creation of porous and interconnected structures. The developed nanocomposite sponge showed suitable physicochemical properties such as hydrophilicity, water vapor transmission rate, water absorption, and mechanical properties. Also, the cytotoxicity and hemolysis percentage of these sponges were within the permissible range. In addition, the antibacterial activity of the sponges increased by adding HNE. Finally, In vivo studies showed that these sponge nanocomposites can have a potential healing function for wound dressing applications.