Due to the numerous comorbidities associated with diabetes mellitus (DM), its complications of poor wound healing, persistent ulceration, and subsequent limb amputation, DM is becoming a major global health concern. The need for research attention increases due to delayed and compromised healing. We provide an overview of the latest developments in our knowledge of the pathophysiology of diabetic wounds in this review, with a particular emphasis on impaired angiogenesis, suboptimal chronic inflammatory response, and barrier disruption. We also discuss potential future directions for treating the various pathologies linked to diabetic wounds. The emphasis of this study is diabetic wound healing, with particular attention to the abnormalities reported in the wound angiogenesis proliferative, remodelling, and maturation phases. This evaluation also considers therapies that might hold the key to improved wound healing results. Future treatment options must address many causes of delayed healing in diabetic wounds, given the worrying rise in the prevalence of diabetes and, consequently, diabetic wounds.