The present invention relates to a potential wound healing agent that composed of a new palmitic acid conjugated tetrapeptide (Glycine - Aspartic acid - Proline - Histidine) known as Palmitoyl-GDPH. From the in-vitro wound scratch assay, it revealed the benefits in providing a favourable environment for cell growth. Besides, the 4 cm2 full thickness wound treated with this therapeutic peptide demonstrated 100 % healing within 18 days, increased re-epithelization, enhanced collagen deposition and diminished scar formation compared to the control group. Moreover, from hematological and biochemical study, topical application of Palmitoyl-GDPH resulted in no significant toxicity and no systemic side effect in the liver, kidney and pancreas of the experimental animals.