Wounds have been considered as the physical injuries resulting in an opening or breaking of the skin. It is also known as cicatrisation, a complex process in which the skin repairs itself after injury. In normal skin, the epidermis and dermis exists in a steady-state equilibrium forming a protective barrier against the external environment, whereas the protective barrier is broken in wounds and the physiological process of wound healing is directly set in motion. Different types of wounds have been reported ranging from mild to fatal. Diabetes mellitus (DM), also called as hyperglycemia, is a group of metabolic disorder characterized by hyperglycemia, polyuria, polydipsia and polyphagia. Wound healing has been found to be impaired in diabetic patients, reason being the decreased blood flow and development of complications like neuropathy resulting in reduced sensation in their hands or feet. This review explains the pathophysiological mechanisms responsible for the impairment of wound healing in diabetes.