Ginseng has been used as miraculous panacea since ancient times in oriental countries. In spite of voluminous work, ginseng still remains mysterious herb, but its value is becoming more recognized in the pharmaceutical and cosmetic fields. In this study, we investigated the effect of Panax ginseng on wound healing using two experimental methods. First, we studied the effect of ginseng on artificial wound of cultured human keratinocyte monolayer. Indivisual components from ginseng (ginsenoside Rb2, Rc, Re, Rg1, and panasenoside) and giseng extrats were examined. Of them, compared with control, ginsenoside Rb2 and Rg1 needed much shorter time to recover original appearance of momolayer. Second, we investigated the effect of ginseng on acute injury on dorsal skin of hairless mice. We here observed that ginseng has prominent effect than Madecasol(asiaticoside), a well known wound healing agent. These results were deduced that ginseng promoted wound healing in the wound region due to its stimulation of biosynthesis of various endogeneous materials that have relation to wound healing. Furthermore, we conformed that ginsenoside Rg1 exhibited anti-inflammatory activity on rat paw edema induced by carageenan. These results suggest that Panax ginseng C.A Meyer can be used in the cosmetics in that its wound healing and anti-inflammatory effects.