The present investigation involves the synthesis of chitosan based composite sponges in view of their applications in wound dressing, antibacterial and haemostatic. A facile CO2 bubbles template freeze-drying method was developed for the fabrication of macroporous chitosan- poly(vinyl alcohol) (PVA) composite sponges with a typical porosity of 50% and pore size of 100-300 µm. The composite sponges show a high water absorption rate up to 60 times of its weight and a water vapor transmission rate of 30 ∼ 70g/m2 • h. Effects of the content of cross-linking agent and PVA on mechanical properties and moisture permeability were examined. Improved strength and flexibility of the chitosan sponges were observed with the presence of PVA. Further, the antibacterial and haemostatic activities have been demonstrated. The Chitosan/PVA sponges of high liquid absorption, appropriate moisture permeability, excellent antimicrobial and haemostatic activities have a great potential for wound dressing applications.