Metal-based nanoparticles (MNPs) have great potential for applications in wound healing and tissue engineering, and due to their unique structures, high bioactivities, and excellent designability characteristics, an increasing number of studies have been devoted to modifying these species to generate novel composites with desirable optical, electrical, and magnetic properties. However, few systematic and detailed reviews have been performed relating to the modification approaches available for MNPs and their resulting composites. In this review, a comprehensive summary is performed regarding the optimized modification formulations of MNPs for application in wound dressings, and the techniques used to prepare composite wound dressings are discussed. In addition, the safety profiles of the novel nanocomposite formulations and the limitations of the reported systems are evaluated. More importantly, a number of solution strategies are proposed to address these limitations. Overall, this review provides new ideas for the design of MNPs to facilitate their application in the field of skin tissue repair, and also looks into the future direction of MNPs in the biomedical field.