Nanofibrous structures mimicking the native extracellular matrix have attracted considerable attention for biomedical applications. The present study aims to design and produce drug-eluting core-shell fibrous scaffolds for wound healing and skin tissue engineering. Aloe vera extracts were encapsulated inside polymer fibers containing chitosan, polycaprolactone, and keratin using the co-axial electrospinning technique. Electron microscopic studies show that continuous and uniform fibers with an average diameter of 209 ± 47 nm were successfully fabricated. The fibers have a core-shell structure with a shell thickness of about 90 nm, as confirmed by transmission electron microscopy. By employing Fourier-transform infrared spectroscopy, the characteristic peaks of Aloe vera were detected, which indicate successful incorporation of this natural herb into the polymeric fibers. Tensile testing and hydrophilicity measurements indicated an ultimate strength of 5.3 MPa (elongation of 0.63%) and water contact angle of 89°. In-vitro biological assay revealed increased cellular growth and adhesion with the presence of Aloe vera without any cytotoxic effects. The prepared core-shell fibrous mats containing medical herbs have a great potential for wound healing applications.