Many essential oils have shown remarkable antimicrobial and wound-healing properties. With increase in antibiotic resistance, the use of essential oils and plant extracts has attracted the interest of researchers. The advent of nanotechnology, the introduction of “Green Chemistry,” and the renewed attention towards the utilization of natural products have made a great impact on research in all areas, including medicine and pharmacy. This study aims to develop “green,” transparent, biodegradable, and chitosan-based nanocomposite hydrogels, loaded with essential oils (Blackseed, Eucalyptus, and Cedarwood) enriched with silver nanoparticles (NPs) (bio) synthesized in
Moringa oleifera
leaf extract, as wound dressings through an environment-friendly, less time and energy-consuming “Green Chemistry” protocol. The morphology, thermal stability, swelling ability, biodegradation potential, antibacterial activity, and wound healing efficiency of chitosan nanocomposite hydrogel films have also been investigated. The hydrogel films were found to be homogenous, pore-free, foldable, and thermally stable (up to 200°C). The films showed good antibacterial behavior against
E. coli
,
S. aureus
and
P. aeruginosa
and were microbial penetration resistant, thus capable of maintaining a sterile wound environment. The biodegradable nature offered disposal benefits and reduced waste. These eucalyptus oil-incorporated films demonstrated good wound healing efficiency.