Diabetic wounds are difficult to treat clinically because they heal poorly, often leading to severe complications such as infections and amputations. Hydrogels with smart self-healing properties show great promise for treating diabetic wounds. These hydrogels are capable of continuously and dynamically responding to changes in the wound environment, feature improved mechanical qualities and the capacity to self-heal damage. We explore the latest developments in smart self-healing hydrogels for diabetic wound healing in this review. First, we systematically summarize the obstacles in treating diabetic wounds. We then highlighted the significance of smart self-healing hydrogels, explaining their stimulus-responsive mechanisms and self-healing design approaches, along with their applications in addressing these challenges. Finally, we discussed the unresolved obstacles and potential avenues for future research. We anticipate that this review will facilitate the continued refinement of smart self-healing hydrogels for diabetic wound dressings, aiming for broader clinical adoption.