The use of cerium oxide nanoparticles (CeONPs) in diabetic wound repair substances has shown promising results. Therefore, the study was conducted to introduce a novel nano-based wound dressing containing chitosan nanoparticles encapsulated with green synthesized cerium oxide nanoparticles using Thymus vulgaris extract (CeO-CSNPs). The physical properties and structure of the nanoparticles were analyzed using XRD, DLS, FESEM and FTIR techniques. The electrospun PCL/cellulose acetate-based nanofiber was prepared and CeO-CSNPs were integrated on the PCL/CA membrane by electrospraying. The physicochemical properties, morphology and biological characteristics of the electrospun nanocomposite were evaluated. The results showed that the nanocomposite with 0.1 % CeO-CSNPs exhibited high antibacterial performance against S. aureus (<58.59 µg/mL). The PCL/CA/CeO-CSNPs nanofiber showed significant antioxidant activity up to 89.59 %, cell viability improvement, and cell migration promotion up to 90.3 % after 48 h. The in vivo diabetic wound healing experiment revealed that PCL/CA/CeO-CSNPs nanofibers can significantly increase the repair rate of diabetic wounds by up to 95.47 % after 15 days. The results of this research suggest that PCL/CA nanofiber mats functionalized with CeO-CSNPs have the potential to be highly effective in treating diabetes-related wounds.