Multifunctional dressings are attracting increased interest in the area of tissue engineering and regenerative medicine. Wound healing is a dynamic and complex process that requires multidisciplinary management. However, dressings that exhibit both anti‐infective and tissue regenerative properties are still limited. Herein, a hydrogel‐based multifunctional dressing weaved by drug‐loaded magnetothermally responsive [Fe3O4@SiO2‐interpenetrating polymer network (IPN)] microfibers and human umbilical cord mesenchymal stem cell‐laden microfibers is developed. Magnetothermally responsive microfibers, as smart constructs, can release antibiotics on‐demand to prevent infection, due to the magnetothermal heating effect of the embedded magnetic nanoparticles and the thermoresponsive property of the IPN hydrogels. Furthermore, stem cell‐laden microfibers markedly promote cell proliferation and tissue remodeling, with improved re‐epithelization, granulation tissue formation, and collagen deposition at the wound site. Hydrogel‐based microfibers have the additional ability of absorbing exudate, providing a moist environment, and retaining the therapeutic cells. Therefore, functional microfibers and textiles significantly accelerate the healing process. An advanced dressing for wound healing, incorporating controlled drug delivery and stem cell‐based therapy is developed. Furthermore, the results of the present study reveal the potential of multifunctional dressings in tissue engineering and regenerative medicine.