Nanotechnology-based wound therapies have drawn significant interest for treating chronic diabetic wounds because of their strong antimicrobial and tissue-repairing properties. This study aimed to create a semisolid ointment with Euphorbia hirta extract and green-synthesized silver nanoparticles (AgNPs). We extracted Euphorbia hirta leaves using ethanol in a Soxhlet extractor and screened the extract for phytochemical components. We synthesized silver nanoparticles through a green method and characterized them using FTIR, UV-Visible spectroscopy, and nanoparticle tracking analysis. This confirmed the presence of functional phytochemicals and nanoparticles primarily in the 50-200 nm size range. We developed two ointment formulations: one with Euphorbia hirta extract and the other with EH-AgNPs. The finished product was formulated and evaluated both for physicochemical properties, including pH, spreadability, viscosity, washability, diffusion, loss on drying, and skin irritation. Both formulations showed a smooth consistency, acceptable pH levels, good spreadability, and no skin irritation. Molecular docking studies of rutin, a key phytochemical, indicated moderate binding affinity to wound-healing enzymes MMP-8 and MMP-9, supporting its therapeutic potential. The results suggest that the Euphorbia hirta-based herbal ointment and the EH-AgNP ointment have promising potential for diabetic wound healing and may act as effective alternative topical treatments.