Wound healing is complex phenomenon which involves various cell types, growth factors, cytokines and vascular system. The dusting powder was chosen as an ideal formulation for the open wounds as it absorbs the excessive moisture which prevents the microbial growth. Povidone iodine as antiseptic, collagen as base and excipients are incorporated in the formulated dusting powder using QBD principles. Analytical techniques such as FTIR Spectroscopy, DSC were employed to check for the interaction among the ingredients used. The drug release kinetics follows higuchi model. From the standardisation and assay the concentration of Povidone iodine in dusting powder was found to be 0.025mg/ml. The Dose of 100µg/ml was found to show effective multiplication of cells in in-vitro proliferation assay using Human Dermal Fibroblast cell line. Adult zebra fish were used in the study as they mimic 70% of human gene. The dusting powder was applied on the amputated caudal fin of the fish to determine the regenerative capacity. The sagittal section of the fin of each group was taken for the histological examination. The study revealed that the formulated dusting powder was found to accelerate the healing of wound and prevent the microbial infection