In recent years, zinc oxide nanoparticles (ZnO NPs) have gained much attention in biomedical applications because of their distinctive physicochemical features such as low toxicity and biocompatible properties. Traditional methods to produce ZnO NPs sometimes include harmful substances and considerable energy consumption, causing environmental issues and potential health risks. Nowadays, the concern of ZnO production has moved toward environmentally friendly and sustainable synthesis methods, using natural extracts or plant-based precursors. This review discusses the green synthesis of ZnO NPs utilizing various plant extracts for wound healing applications. Moreover, ZnO NPs have antibacterial characteristics, which can prevent infection, a substantial obstacle in wound healing. Their ability to maintain inflammation, proliferation, oxidative stress, and promote angiogenesis proves their critical role in wound closure. In addition, ZnO NPs can also be easily and ideally incorporated with wound dressings and scaffolds such as hydrogel, chitosan, cellulose, alginate, and other materials, due to their exceptional mechanical properties. The latest publication of green synthesis of ZnO NPs and their applications for wound healing has been discussed. Therefore, this review provides a current update of knowledge on the sustainable and biocompatible ZnO NPs for specific applications, i.e., wound healing applications. In addition, the green synthesis of ZnO NPs using plant extracts also provides a particular approach in terms of material preparation, which is different from previous review articles.