Abstract: Wound healing is a long and complex process. To improve wound healing, the wound dressing cotton gauze can be functionalized by imparting moisture holding and antibacterial ability. Moisture is an important factor for wound healing and the absence of microbial intervention can accelerate wound healing process. Direct alkylation method was used to synthesis carboxymethylated chitosan with water solubility, biocompatibility and antibacterial activity. Calcium alginate was used along with modified chitosan as moisture gaining polymeric agent. Pad-dry-cure method was employed to coat both the polymers on cotton gauze surface, which was weaved using 40s Ne cotton yarn. After coating, the cotton was analysed for its polymer add-on percentage, antibacterial action against Staphylococcus aureus ATCC 6538 and Escherichia coli ATCC 10229. The persistence analysis of antibacterial activity ensures the polymer withstanding ability on cotton gauze surface. SEM detection of polymers with cotton threads confirms their presence. Wound healing action of the polymer coated cotton gauze was determined using albino rats as animal model.