Peripheral nerve injury is a major clinical problem that can cause persistent motor dysfunction, sensory impairment, neuropathic pain, muscle atrophy, and gait abnormalities. Although peripheral nerves possess regenerative capacity, functional recovery is often incomplete because axonal growth is slow and strongly influenced by the microenvironment surrounding the injury. This study aimed to evaluate the potential of absorbable gelatin sponge (AGS) as a scaffold for delivering platelet-rich plasma (PRP) in peripheral nerve regeneration. A literature review was conducted using relevant studies retrieved from PubMed, Google Scholar, and Scopus, focusing on publications from 2016–2026 concerning gelatin-based scaffolds, PRP, peripheral nerve injury, regenerative mechanisms, and functional recovery. The reviewed evidence indicated that AGS possessed favorable porosity, biocompatibility, absorption capacity, and biodegradability, enabling it to retain PRP at the injury site and support the sustained release of neurotrophic growth factors. PRP contributed to Schwann cell activity, angiogenesis, axonal growth, remyelination, and inflammatory regulation. Experimental findings also demonstrated improvements in axon diameter, myelin thickness, nerve morphology, electrophysiological responses, and gait parameters following AGS-mediated PRP application. In conclusion, AGS represents a promising PRP delivery scaffold for peripheral nerve regeneration. However, standardized PRP preparation, scaffold dimensions, dosage, application techniques, and clinical trials are required before routine clinical implementation can be recommended.