Chronic wound healing is often hindered by long-term inflammation and redox imbalance. Herbal medicine, with its rich medicinal components such as polysaccharides, flavonoids, phenolic acids, and small-molecule nutrients, has gained attention for its anti-inflammatory and antioxidant properties. Xanthium strumarium (XS) is a potent anti-inflammatory herb that has shown promise in treating conditions like rhinitis and may have specific benefits for chronic skin wounds. However, traditional XS preparations taken orally can have harmful effects on the liver and kidneys, limiting its clinical use. To date, there has been no documented method for the localized and sustained delivery of XS. This study introduces a timely development of a multifunctional hybrid hydrogel, incorporating bioactive XS extract and Gelatin Methacryloyl (GelMA), for the purpose of diabetic wound healing. In vitro experiments showed that XS/GelMA had strong anti-inflammatory and antioxidant effects through the Akt/mTOR pathway. The XS extract itself also significantly enhanced cell migration and angiogenesis. In vivo studies confirmed the superior wound healing properties of XS/GelMA. These findings suggest that XS-derived hydrogels have great potential for skin regeneration and tissue engineering applications.