Wound healing is physiological process, passing through three main overlapping phases, including inflammatory, proliferative, and remodeling phase to repair the damaged tissue. Some vital process in wound healing, including inflammatory cell infiltration, angiogenesis and collagen tissue formation, seems to be disrupted in diabetes, which is a metabolic disorder. The aims of this study were to investigate the effect of different concentrations of hydroalcoholic extract of Teucrium polium, which is a medicinal plant, on the process of wound healing in diabetic rats. Diabetes were induced in twenty adult Albino-rats using a single intraperitoneal injection of streptozocin. Five wounds were created on the back of each rat, and treated as control (untreated), vasaline-treated, and 5%, 10% or 15% Teucrium polium extract-treated. The results showed that Teucrium polium extract stimulated wound healing by enhancing the rate of wound retraction, angiogenesis, fibroblast proliferation, collagen deposition, and maturation. Although there was a reduction in the level of granulation tissue thickness deposition within the wound. The rate of the epithelial regeneration was improved, and the thickness of the regenerated epithelium was reduced. Overall, there was a promising impact of the extract on the process of wound healing through improving different phases of the process.