Diabetes mellitus (DM) is a common but complicated metabolic disease that causes hyperglycemia for a long time. It may cause serious health problems, such as poor wound healing. The complex biology of diabetic wound healing is reviewed here, with particular attention paid to the interactions between neuropathy, inadequate angiogenesis, metabolic dysfunctions, and chronic inflammation. Diabetes affects approximately 537 million individuals globally, and as the disease becomes more common, new treatment methods for chronic wounds are required. Reduced blood flow, sensory loss, and an insufficient inflammatory response are some of the variables that combine to cause persistent diabetes ulcers and often impede the healing process. There is major health issues associated with these ulcers, such as infections, gangrene formations, and even limb loss. Recent developments in the molecular processes of diabetic wound healing have provided important new information on the function of metabolic imbalances, the dysregulation of inflammatory pathways, and polymicrobial infections in tissue repair. This article discusses contemporary therapy strategies, which range from traditional wound care procedures to cutting-edge interventions including growth factor therapies and bioengineered skin replacements. To improve wound healing in diabetes patients, we want to provide researchers and physicians with useful information on possible intervention targets and future approaches by combining the most recent research results. Finally, a better comprehension of these intricate relationships might result in improved patient outcomes and a higher standard of living for those with diabetic wounds.