Diabetic wounds are one of the severe health issues due to several pathogenic abnormalities that hinder the healing process. Favorable conductivity for cell growth, proliferation, and adhesion of nanofiber membranes offers immense potential for effective diabetic wound healing. In this study, we utilized the coaxial electrospinning method to synthesize core-shell structure nanofiber membranes for diabetic wound healing. To obtain superior nanofiber membranes, we carried out this process by modifying the shell part of the electrospun nanofiber, combining gelatin methacrylate (GelMA) with cerium oxide (CeO2). The results show that these nanofibers exhibit compelling wound healing properties while maintaining antibacterial, anti-inflammatory and favorable mechanical properties. With the addition of 3% w/v CeO2 nanoparticles (PGCe-3 CL sample), the nanofiber membrane increased antibacterial activity, reducing bacterial colonies by up to 88.46% for S. aureus and 93.14% for E. coli bacteria. The cell viability test showed enhanced non-toxicity properties of the nanofiber membranes with significant cell proliferation. Furthermore, the mechanical test showed that PGCe-3 CL has a tensile strength of 8.49 MPa. Accordingly, the synthesized nanofiber membranes loaded with nano CeO2 in this study have promising performance as suitable diabetic wound dressing. Moreover, the findings of this study are expected to provide valuable insights for developing more effective and innovative materials for diabetic wound healing.