Burn injuries induce oxidative stress, inflammation, and collagen degradation, impairing skin regeneration. Terminalia catappa L. (ketapang) has potential as a healing agent due to its rich bioactive compounds, including flavonoids, tannins, saponins, triterpenoids, and phytosterols. This narrative review aims to evaluate the wound-healing potential of Terminalia catappa L. extract based on preclinical evidence and its underlying pharmacological mechanisms. This structured narrative review aims to evaluate the wound healing potential of Terminalia catappa L. extract based on preclinical evidence and its underlying pharmacological mechanisms. Relevant scientific literature (2014–2023) was sourced from ScienceDirect, PubMed, ResearchGate, and Google Scholar, and analyzed using a qualitative thematic narrative synthesis. The major phytoconstituents of ketapang—including punicalagin, ellagic acid, gallic acid, luteolin, kaempferol, betulinic acid, and β-sitosterol—act synergistically to suppress oxidative stress via ROS scavenging and modulate inflammation by inhibiting NF-κB, MAPK, COX-2, iNOS, and pro-inflammatory cytokines (IL-6, IL-1β, TNF-α). Additionally, the extract supports extracellular matrix regeneration by enhancing fibroblast proliferation and collagen deposition. Preclinical evidence demonstrates that ketapang extract accelerates wound contraction, re-epithelialization, and granulation tissue formation. In a second-degree burn model, a 25% methanolic ketapang leaf extract ointment provided optimal collagen density compared to 50% and 100% concentrations. In conclusion, ketapang extract shows promising potential for development into an effective topical preparation for burn wound healing.