A stabilized collagen gel is disclosed as are methods of making this collagen gel which is useful as a wound dressing to prevent dehydration of the subject being treated and infection of the wound. The collagen gel of the invention is stabilized by combining collagen (preferably in pharmaceutical grade collagen, which is atelopeptide collagen), with iodine or a composition capable of generating iodine. The collagen is flowable on first mixing and undergoes a phase transition to form a stable gel with sufficient structural integrity to form a wound dressing.