Hydrogels are one of the most thought‐provoking formulations used widely for biomedical applications. In the present investigation, poly(vinyl) alcohol (PVA) and its cerium oxide (CO) composite‐based hydrogels were prepared by the combination of electrospinning and thermal processing technique. The partial crosslinking, along with time‐controlled heating (10 min), delivered PVA hydrogel. The mechanism was explained with Fourier‐transform infrared spectroscopy analysis, where the hydroxyl group disappeared in long‐duration (30 min) of heat treatment and they retain in lesser duration. The heat‐treated PVA transformed from amorphous to crystalline, since the Tg of PVA disappeared in 30 min heat treatment, while the Tg increased to 85°C (10 min heat treatment) from 70°C in PVA, suggested the full and partial crystallinity. The swelling and porosity studies reveal the hydrogel formation of heat‐treated PVA. Interestingly, CO reinforced PVA composites show better swelling with respect to heat‐treated PVA. Furthermore, CO reinforced PVA hydrogel demonstrated better biocompatibility platelet adhesion and accelerated wound healing competence.