Wound is an injury usually resticted to physical one with disruption of normal continuity of structure. Water vapour permeable films were formulated using sodium alginate, Hydroxy propyl methyl cellulose 15 cps and Carbopol 934P by solvent casting method. This film forms in-situ hydrdogel by absorbing exudates and adheres to keep wound moist and delivers broad spectrum antibiotic Doxycycline hydrochloride for specified period of time. From the results of preliminary trials, propylene glycol was selected as plasticizer, water and/or isopropyl alcohol as solvent and teflon as casting surface. Films were evaluated for swelling index, % elongation, tensile strength, water vapour transmission rate etc. Optimized films were loaded with broad spectrum antibiotic Doxycycline hydrochloride and were evaluated for in vitro dissolution, wetting ratio, water evaporation, mucoadhesion and microbial penetration study. In vivo and histopathology study of optimized batch D-SC3 was also carried out to confirm its efficacy on 2×2 cm2 full thickness wound created on albino rats (n=6). Significant difference between test and standard formulation was confirmed by paired two sample t-test where test formulation showed 96% wound contraction in 22 days without scab formation whereas only 80% wound contraction was found in standard formulation.