Objective To study the ability of human pluripotent stem cell-derived smooth muscle cells (hiPSCSMCs) to improve wound healing in diabetic mice. Methods hiPSC-SMCs, positive control adipose-derived stem cells (ADSCs), and negative control cell-free phosphate-buffered saline (PBS) were added to type I rat tail collagen to prepare stem cell or cell-free collagen scaffolds. The scaffolds were applied to splinted back wounds in diabetic nude mice. The wound was photographed and harvested at various time points, and immunohistochemical staining and western blot analysis were performed. Results Compared with the cell-free control group, hiPSC-SMCs had the same ability as ADSCs to promote wound healing in diabetic mice. The wound size was significantly reduced the day after surgery. Wounds in hiPSCSMC and ADSC groups had significantly more cell proliferation, α-SMA-positive cells, CD31-positive cells, VEGF-Apositive cells, and VEGF-A and PDGF expression. Conclusions hiPSC-SMCs promote the expression of angiogenic and regenerative cytokines, and promote angiogenesis and cell proliferation, thereby promoting wound healing in diabetic mice.