Glucocorticoid-induced leucine zipper protein (GILZ) peptide compositions and their methods of use in wound healing are disclosed herein. An exemplary GILZ peptide composition includes a GILZ fusion protein. The GILZ peptide compositions can be administered topically to wounds, for example in the form of a cream, ointment, or lotion. The GILZ peptide compositions can be used to treat acute wounds, induce wound healing in chronic wounds, and reduce scar formation.