Hydrogels can possess desired biochemical and mechanical properties, excellent biocompatibility, satisfactory biodegradability, and biological capabilities that promote skin repair, making them ideal candidates for skin healing dressings. Polysaccharides, such as chitosan, hyaluronic acid and sodium alginate as well as proteins, including gelatin, collagen and fibroin proteins, are biological macromolecules celebrated for their biocompatibility and biodegradability, are at the forefront of innovative hydrogel dressing development. This work first summarizes the skin wound healing process and its influencing factors, and then systematically articulates the multifunctional roles of hydrogels based on biological macromolecules (polysaccharides and proteins) as dressing in addressing bacterial infection, hemorrhage and inflammation during wound healing. Furthermore, this review explores the potential of these hydrogels as vehicles for combination therapy, by incorporating growth factors or stem cells. Finally, the article offers insights into future directions of such hydrogels in wound repair field.