Progressions in wound controlling to encourage rapid and successful healing of wound by providing a warm humid environment at the site of application of treatment aims to facilitate patient immediate rescue. Ceramide has an extravagant prospective in providing structural support and preserving the water-retaining properties of the epidermis. Hydrogel and Composite sponges based on chitosan/gelatin, with and without incorporating ceramide, was synthesized by chemical crosslinking and evaluated as wound dressing material. Physical characteristics of the prepared Hydrogels such as water vapor transmission rate (WVTR) and composite sponges (water absorption and weight loss) were inspected. The lowest WVTR was showcased by the sample containing chitosan and hydrogel in 1:1 ratio, with ceramide included in them. Addition of ceramide led to lower WVTR. FTIR of hydrogel membranes and composite sponges authenticated the existence of free hydroxyl groups. N-H and O-H stretching and the intramolecular hydrogen bonds were indicated by presence of bands for the composite material in the region 3272.6 − 1028.7 cm−1 and 3280.1 − 1028.7 cm−1 in hydrogel membrane. Stretching of C = O bonding due to the formation of hydrogen bonds are detected in amide I mode, which implies the presence of hydrogen bonding. The SEM images revealed that the surface of hydrogel membranes were compact in nature, which prevents microbes from entering. The porous nature of the internal structure of the composite sponges allows for improved water retention. Increasing the amount of chitosan by threefold that of hydrogen improved the porosity of the structure.