Dry socket, also known as alveolar osteitis, presents significant challenges in oral surgery because of severe pain and delayed wound healing. This study aims to address these challenges by developing and evaluating a lidocaine-loaded polyelectrolyte complex thermoresponsive gel (LG) designed to enhance wound healing and provide effective pain management in oral wounds. The thermoresponsive gel transitions from a liquid to a gel at body temperature, ensuring sustained contact with the wound site and prolonged release of lidocaine. The in vitro assessments, including cytotoxicity and wound scratch assays, demonstrated the biocompatibility and therapeutic potential of the LG formulation. Following this, palatal wounds were induced in rats, with healing monitored over a 14-days period. Histological analyses were conducted to assess tissue regeneration and inflammation. The results indicated that the LG formulation significantly improved wound closure rates, reduced inflammation, and accelerated epithelialization compared with control groups, primarily because of the high content of hyaluronic acid (HA). The synergistic effects of HA combined with the thermoresponsive properties of the gel facilitated faster healing. These findings suggest that LG is a promising therapeutic option for enhancing oral wound healing and effectively managing pain, particularly in conditions such as dry socket.