The present invention provides a topical oxygen therapy system for treating chronic non-healing wounds. The system is configured to be extremely portable, allowing patients to be completely ambulatory during treatment. The topical oxygen therapy system includes an oxygen source and a wound dressing capsule. The oxygen source includes a miniature compressed oxygen cylinder and a miniature pressure regulator that delivers oxygen through an outlet tube to the interior of the wound dressing capsule. The oxygen source may be attached directly to or integrated into the wound dressing capsule. Alternatively, the oxygen source and wound dressing capsule may be separate modules connected by a flexible tube.
