In the treatment of skin wounds, applying dressings over the wound can facilitate wound healing. Based on the background of the development of bioengineering materials, functional dressings are gradually used in clinical practice. Among them, hydrogel has drawn considerable attention due to the advantage of simple preparation and high biocompatibility. Multifunctional hydrogel dressing can inhibit inflammatory response in skin wound healing, which is conducive to wound repair and healing. This article mainly reviews the application of different types of multifunctional hydrogel dressings in skin wounds, in order to provide some reference value for clinical practice.