<p>Cyclic peptides have emerged as particularly potent therapeutic agents due to their distinct structural and functional features. It exhibits remarkable versatility through diverse mechanisms of action, including broad-spectrum antimicrobial activity against multidrug-resistant pathogens, precise immunomodulatory functions that facilitate the transition from inflammatory to proliferative phases, enhanced cellular migration and proliferation through growth factor, angiogenesis promotion via VEGF and integrin pathway activation, and sophisticated extracellular matrix modulation. The combination of cyclic peptides and hydrogel technology is one of possible method for treating chronic wounds, such as diabetic foot ulcers. It has been shown to be highly successful in treating extracellular matrix defects, poor angiogenesis, and chronic inflammation in clinical settings. This thorough review literature include the the current status and future possibilities of cyclic peptide-based wound dressings by emphasizing the scalable manufacturing standardization, complete long-term safety profiles, regulatory pathway optimization, and cost-effective manufacturing processes. Future views include AI-driven peptide design, personalized medicine techniques based on wound-specific biomarkers, smart material integration for temporal control, and combination treatments that target various healing pathways at the same time. The combination of computational design, modern manufacturing, and clinical validation positions cyclic peptide-based wound dressings as transformational medicines with the potential to address significant unmet needs in wound treatment.</p>