Antibacterial photodynamic therapy (aPDT) is emerging as an effective means of treating pathogenic bacteria, especially in light of the challenges posed by antibiotic resistance. SQR29, an organophotosensitizer, was encapsulated in a poly(lignin/PEG/PPG urethane) hydrogel to enable targeted treatment at a specific infected area. The hydrogel exhibited free radical scavenging properties which were effective in preventing oxidative stress and promoted wound healing. The hydrogel exhibited a significant aPDT effect on Gram-positive bacteria, hence showing its potential in combating antibiotic-resistant pathogenic bacteria in chronic wound infection.