The mixtures of polyvinyl alcohol (PVA) and polyethylene glycol (PEG) with calcium chloride (CaCl2) were exposed to gamma-irradiation to synthesize transparent hydrogels for wound dressing. In this system, CaCl2 was used not only as a gelling material but also as a plasticizer. The presence of CaCl2 enhances the effects of PEG, this synergistic effects give births a new hydrogel with improved characteristics. The water absorption capacity of the hydrogel was in the range of 350-375% after immersion in normal saline for 72 h. In vitro weight loss experiments were conducted at 37 oC in order to simulate the use of dressing on wounded skin. The enhanced thermal stability of the hydrogel was confirmed by thermogravimetric analysis (TGA). FTIR studies confirmed the cross-linking between PVA and PEG in the hydrogel. Furthermore, the microbe penetration test of the hydrogel was carried out to confirm its impermeability to bacteria. The effect of hydrogel on cell proliferation was also evaluated to ensure that the hydrogel does not release materials which might be deleterious to cell proliferation. The results showed that the hydrogel could be considered as a potential wound-dressing material.