Currently, the treatment and care of diabetic wounds, which generally possess the characteristics of a high amputation rate, high recurrence rate and high mortality, has developed into a worldwide challenge. Wound dressings have been playing an important role in diabetic wound treatment and continuously innovated to obtain many amazing properties. Among them, hydrogel dressings have become one of the most attractive and promising wound dressings because of their considerable moisture retention, biocompatibility and therapeutic properties. In recent years, with the in depth understanding of the pathogenesis of diabetic wounds, various functionalized hydrogel dressings have been reported and shown encouraging results, which has brought great benefits to the improvement of diabetic wounds. In this work, we will systematically and comprehensively summarize the advances of hydrogel dressings in diabetic wounds, aiming to provide not only theoretical support for hydrogel dressing devising but also inspiration for diabetic wound treatment.