Atropa belladonna is one of the herbs used to treat wounds and prevent inflammation. This study provides a scientific assessment for the wound healing potential of biodegradable nanofibers containing Ag nanoparticles encapsulated with atropa belladonna extract (eAgNPs). Ultraviolet-visible (UV-vis) spectroscopy was used to observe the localized surface plasmon resonance (LSPR) band of AgNPs synthesized from atropa belladonna extract prepared under different conditions. Polycaprolactone (PCL) nanofibers with eAgNPs were fabricated using the electrospinning technique. The distribution of AgNPs and eAgNPs and the size of nanofibers were characterized with scanning and transmission electron microscopy (SEM, TEM) before and after degradation at the end of 18 weeks. Fourier transform infrared (FTIR) spectroscopy showed the surface interactivity between AgNPs, atropa belladonna extract and PCL nanofibers and also approved the modification of PCL nanofibers with eAgNPs. X-ray diffraction analysis (XRD) defined the formation of the crystalline AgNPs and appreciated the orientation of the nanofibers. Results of tension tests revealed that modification of PCL nanofibers with pure AgNPs and eAgNPs significantly increased strength and tensile modulus. Due to the hydrophobic nature of PCL, modification with pure AgNPs and eAgNPs slightly reduced its hydrophobicity. Biodegradation tests of PCL nanofibers with eAgNPs exhibited a higher degradation rate than neat PCL nanofibers. MTT results revealed that eAgNPs doped PCL samples have better cell viability than AgNPs doped and neat PCL nanofibers. Owing to their antibacterial properties, biodegradation rates, low cytotoxicity, mechanical and surface morphologic properties of AgNPs modified PCL nanofibers containing atropa belladonna are considered to have a great potential for skin regeneration.