Wound dressing research has been determined by population aging, persistence of wound infection and the increase in chronic wound cases. Thus, besides mechanical protection, wound dressings must interact with the wound and improve the healing process. To achieve this demanding goal, wound dressing research has been focussing on the development of composite wound dressings that combine the best of two or more polymeric materials. Cellulosic materials are still the most used for wound management. Their importance is reflected in the number of publications on this subject in the textile engineering field. Textile wound dressing can cause maceration to the wound and pain during removal. However, the limitations of cellulosic wound dressings can be overcome by functionalization with hydrogels, which will maintain the moisture environment and improve the drug delivery ability of cotton. Therefore, the present review summarizes the composite materials research on the functionalization of cotton cellulose with hydrogels, to be applied as a wound dressing, and the methods and techniques used to synthesize those composites.