This research aimed to develop wound dressings from weft-knitted spacer fabrics as an alternative to existing dressing options. A Stoll Type CMS530 HP electronic flat knitting machine was used to develop spacer weft knitted fabrics, which were tested with various experimental configurations by adjusting the linking distances, spacer yarn ratios, and inlays for proper optimization. Fabric physical and performance properties were evaluated to determine the application of wound dressings and the influence of structural differences. The result showed that the fabric with nylon-to-cotton yarn containing a linking distance setting of 6 needles at a ratio of 1:3, had the highest total performance value, making it the most appropriate fabric for exudate dressing in humid environmental conditions. The fabric with the highest water absorption capacity, and moisture management fabric type was the most effective.