Abstract: Wound healing is a complicated process with haemostasis, neovascularisation and re-epithelisation. To accelerate the process, moisture, sterile condition without microbial intervention and plant metabolites to influence the wound healing related metabolic functions are needed. The 40s Ne yarn was used to prepare the wound dressing cotton gauze. The physical properties such as areal density, air permeability and stiffness of gauze were analysed. Mixed polymer formulations like chitosan-sodium alginate, sodium alginate-calcium alginate and chitosan-sodium alginate-calcium alginate were prepared and coated separately on cotton gauze surface using pad-dry-cure method. The herbal extract of Bletilla striata was immobilized on the polymer coated fabrics to increase the rate of wound healing. The qualitative and quantitative antibacterial assays of coated cotton gauze was evaluated against the bacteria S. aureus ATCC 6538 and E. coli ATCC 10229 using the standard EN ISO 20654:2004 and AATCC testing methods. Animal model was used to reveal the wound closure effect of the prepared specimens. A novel design of various polymer coated cotton gauze fabric for wound healing with antimicrobial activity was developed using 40s Ne yarn. The cotton gauze with all the three polymers and herbal extract showed rapid wound healing effect due to excellent antibacterial activity by chitosan, moisture retaining by alginate and cell proliferation and tissue regeneration effect from B. striata extract in albino rat animal models.