Acalypha indica (A. indica) possesses antibacterial properties and has capability to accelerate wound healing due to its active therapeutic compounds of flavonoid and alkaloid. The incorporation of A. indica extracts in polymer hydrogels is useful for wound treatment, despite the advancement in synthetic medicines and drugs. In this study, polyvinyl alcohol (PVA) hydrogels with different concentrations of A. indica extract (0.5, 1.0, 1.5 and 2.0 mg) were fabricated. The ATR-FTIR spectra testified the presence of A. indica in the hydrogels. More enormous spotted agglomerations were visualized on the higher concentrations of A. indica hydrogels. The A. indica hydrogels became less moisture, more hydrophobic and has low water uptake ability compared to the control hydrogel (without A. indica). The antibacterial activities of the hydrogels against Escherichia coli and Staphylococcus aureus were acted in a dose-dependent manner where higher inhibition zones and higher bacterial retardations were recorded on the hydrogels with higher concentrations of A. indica. The incorporation of A. indica (1.0 - 1.5 mg/mL) has also induced cell viability, cell migration, and proliferation of the human skin fibroblasts. Therefore, optimization of the A. indica hydrogels is crucial in accommodating the bi-functional properties of antibacterial and biocompatibility for wound treatment.