The wound is a biosynthetic environment in which numerous cellular processes are interlinked in the process of repair. Modern dressings are designed to facilitate wound healing rather than just to cover it. Hydrogel dressing can protect injured skin and keep it appropriately moist to speed the healing process by absorbing exudates while maintaining the products of tissue repair, including growth factor and lysosomes, in contact with the wound. The design and development of novel membrane of hydrogels prepared by esterification of polyvinyl alcohol with gelatin were attempted. Contact angle of goat blood was determined. The hydrogel was characterized by hemolysis test and water vapor transmission rate. Diffusion coefficient of salicylic acid (SA) and gatifloxacin, a fourth generation fluoroquinolone, through the membrane was determined. Both the drugs were used as model drug. Methyl tetrazolium dye assay of the membrane was done using L929 fibroblast cell line and mice splenocytes to establish the biocompatibility of the membrane. The equilibrium goat blood-in-air contact angles of measured ester films ranged from 56 to 60 degrees . The hydrogel was found to be hemocompatible and moisture retentive indicating its possible use in moist wound care. The diffusion coefficient of SA and gatifloxacin through the membrane was found to be 1.49 x 10(-5) and 3.97 x 10(-6) cm(2)/s respectively. The membrane was found to be compatible with the L929 fibroblast cell line and mice splenocytes.