A rise in the incidence of skin burns and chronic wounds present a first health care problem. Hence collagen – chitosan-based wound dressing has been seen as a way to heal wounds without leaving a scar. Collagen is the most ubiquitous protein found in marine organisms. Here, chitosan plays a vital role in improving the stability of the collagen. The Collagen-chitosan films comprised of collagen derived from skins of Catla catla which were pretreated and lyophilized and confirmed by sodium dodecyl sulphate polyacrylamide gel electrophoresis (SDS-PAGE). Thus, in this new approach collagen has been hybridized with the naturally occurring bioactive material chitosan to improve the mechanical properties with enhanced stability, and it can be effectively utilized for the wound dressing in clinical application. Physico-chemical properties and surface morphology of the films were analyzed through SEM and FTIR. Mechanical stability of collagen – chitosan film showed increased tensile strength and elongation at break. The Anti-bacterial and Anti-inflammatory activity of collagen - chitosan films were performed. Also, the in vitro biocompatibility of collagen chitosan films was confirmed by wound scratch assay on fibroblast cells. It was concluded that this present study reveals that the preparation of collagen-chitosan films from a new source of natural collagen could be suitable for the application of wound dressings.