This review highlights collagen's remarkable properties essential for effective wound healing and explores recent advancements in collagen-based nanofibers designed to enhance this process, improving patient outcomes and quality of life. Impaired wound healing remains a significant clinical challenge, necessitating innovative wound care solutions. Collagen plays a pivotal role in wound healing, offering several vital properties that enhance the repair process. Electrospun nanofibers have emerged as transformative technology in wound healing, providing novel solutions to improve the repair process. Collagen-based nanofibers are promising materials due to their structural resemblance to the native extracellular matrix (ECM) and their bioactive properties. As a major ECM component, collagen provides a natural scaffold that supports crucial wound repair processes, including cell adhesion, migration, proliferation, and differentiation. Electrospinning technology has enabled the creation of collagen nanofibers with high surface area-to-volume ratios, mimicking the ECM's fibrous structure. These nanofibers can be customized to improve mechanical strength, porosity, and biocompatibility by incorporating various bioactive agents such as growth factors, antimicrobial agents, and antioxidants. These features enhance oxygen supply, support sequential tissue formation, and ensure biocompatibility, significantly advancing the healing process. Recent research underscores the effectiveness of collagen nanofibers in accelerating tissue regeneration, reducing inflammation, and preventing infection. The controlled release of bioactive molecules from these nanofibers fosters a favorable wound environment, promoting angiogenesis and collagen deposition. Additionally, the adaptability of collagen-based nanofibers makes them suitable for treating chronic wounds, burns, and diabetic ulcers, each with its unique challenges.