The effects of topical administration of polysaccharides isolated from fungus, Phellinus gilvus (PG) on the healing of rat dermal wounds were assessed. In 10 Sprague-Dawley (SD) rats, six 6 mm diameter defects were made with a punch biopsy appliance. After 24 hr, test substances were applied to the defects twice a day: 0.025, 0.25, and 2.5% polysaccharides from PG (PG0.025, 0.25, and 2.5 groups), Madecassol ointment (MC group), aqueous gel (AG group) and no treatment (control group). Six days postoperatively, the contraction and reepithelialization of the wound surface were assessed. Wound diameter was significantly reduced in all PG groups (P<0.05). Complete epithelialization and macrophages were noted in the PG0.25 group, as compared to the control group. We conclude that polysaccharides isolated from PG have significant dermal wound healing effects, and this investigation suggests the potential clinical application of PG as a wound healing agent.