Background Diabetes mellitus, a persistent metabolic disorder defined by elevated blood glucose, poses a global public health challenge. One of the most debilitating complications of this disease is the progression of chronic, non-healing wounds, particularly in the lower extremities.Purpose The present work was dedicated to studying the beneficial effects of albiflorin to enhance wound healing in streptozotocin (STZ)-induced diabetic rats.Materials and Methods In the current investigation, rats received an injection of STZ and were subjected to excision wound development. The rats were treated with albiflorin for 14 days. After the treatments were completed, the glucose and insulin levels, wound diameter, wound closure rates, and wound healing biomarker levels were estimated in the experimental rats. The concentrations of inflammation and oxidative stress biomarkers were evaluated using commercial kits. The wound tissues were subjected to a histopathological study to investigate histological alterations. The anti-bacterial effects of the albiflorin were assessed against Staphylococcus aureus and Pseudomonas aeruginosa.Results The albiflorin treatment significantly reduced glucose, elevated insulin levels, and increased the wound closure rate in diabetic rats. Furthermore, the albiflorin treatment diminished the inflammatory marker levels and reduced oxidative stress via upregulating the anti-oxidant mechanisms. The albiflorin treatment also efficiently regulated the wound healing biomarker levels in diabetic rats and showed better anti-bacterial activity. Moreover, histological analyses have demonstrated that albiflorin treatment can improve the wound healing process in diabetic rats.Conclusion The findings indicate that albiflorin may significantly increase wound healing in diabetic rats. Consequently, the current data suggest that albiflorin may offer a useful therapeutic alternative for diabetic wound management.