Diabetic foot ulcer (DFU) is a chronic wound prevalent in over 20% of diabetic patients, arising from poor blood circulation, nerve damage, and a weakened immune system. Despite advancements in treatment strategies, DFUs remain a leading cause of frequent hospital visits, foot amputation, and mortality among diabetic individuals, with a recurrence rate of around 50% within 5 years. Emerging strategies emphasize the integration of glycemic control, patient education, and advanced wound management techniques, including polysaccharide-based dressings incorporated with metal nanoparticles such as silver, zinc oxide, gold, copper, cerium oxide, titanium dioxide, and so on, due to their ability to penetrate the wound site and bacterial cell wall. These polymeric dressings synergistically enhance wound healing by absorbing the wound exudate, maintaining a moist environment, promoting cell signaling, and so on. At the same time, the nanoparticles exhibit potent antimicrobial activity, disrupt bacterial biofilm, and promote tissue regeneration. This chapter critically examines recent advancements in polymeric dressings embedded with metal nanoparticles, highlighting their clinical potential, the nanoparticles’ mechanisms of action, and limitations in managing DFUs.