Approximately, 1 to 2% of the population in developed countries suffer from chronic wounds. Nearly 6.5 million Americans have suffered at least one chronic wound. Chronic wound treatment is critical for patients to maintain their mental and physical well-being and improve their life quality. Chronic wounds can be treated in various ways, including hyperbaric oxygen therapy, debridement, ultrasound, skin grafts, negative pressure wound therapy, electromagnetic therapies, and hydrogel dressings. Hydrogels are among the most viable and promising options since their tunable characteristics, such as adhesiveness, antimicrobial and biodegradability, pre-angiogenic bioactivities, and anti-inflammatory, are beneficial to healing chronic wounds. In in vivo studies utilizing animal models, hydrogel dressings emerged as multifunctional solutions for chronic wound healing. These investigations consistently demonstrated that hydrogel dressings accelerated wound healing rates compared to traditional methods and maintained an optimal moist wound environment, which fostered tissue regeneration while minimizing scarring. Moreover, the remarkable biocompatibility of hydrogel dressings became evident in these animal model experiments, as they showed minimal adverse reactions in chronic wound patients. The results of these in vivo studies collectively highlight the promising potential of hydrogel dressings as a versatile therapeutic option for effectively managing chronic wounds. This review discusses dressings made of hydrogel in animal models for their multifunctional properties and potential benefits in treating chronic wounds. The efficacy of hydrogel dressings over other kinds of dressings is also demonstrated by providing examples of commercially available hydrogel dressings.