Lawsonia inermis (henna) is well-known for its wound healing properties. Lawson has vast range of pharmacological actions from anti-inflammatory to anti-cancer. The aim of current study was to formulate an ointment of Lawson, its characterization and to evaluate its wound healing potential. Different parameters such as pH, viscosity, specific gravity, stability parameters (texture, phase separation, odour and appearance of color) and permeability of ointment was estimated. For wound healing properties of prepared ointment, skin irritation test, spreadability of ointment and effect on histopathology of rat skin were carried out. The specific gravity of formulation OLA-1, OLA-2, and OLA- 3 was in acceptable range. Formulation having higher concentration of Lawson showing greater viscosity by using spindles 5s, 6s and 7s. The pH was 5.1-6.2 of calculated amount of prepared ointment. Permeability was found higher in the formulation containing greater quality of Lawson. In vivo studies showed that formulation OLA-4, OLA-5 and OLA-6 showed promising results of healing up to 57%. Spreadability of all formulation ranges between 39 cm to 48 cm. stability parameters and characterization showed that Lawson has enormous potential. These findings suggest that prepared ointment is excellent in wound healing management.