We produced a protein loaded, pH-sensitive alginate-bentonite hydrogel for wound dressings. Alginate is a nontoxic polysaccharide with favorable pH-sensitive properties that make it useful for the intestinal delivery of protein drugs. However, the use of alginate for drug delivery is limited by drug leaching and rapid dissolution of alginate at the higher pH, which may result in lower entrapment efficiency and a burst in the release of entrapped protein drugs. To overcome these problems, we created a novel cross-linked alginate-bentonite hydrogel by combining mineral-rich bentonite with the alginate matrix along with an additive to ensure controlled release. We analyzed the gel in the drug loading process in an aqueous environment by looking at the release profiles of a model protein drug (BSA) from the hydrogel at pH values of 4.5, 5.2 (skin area) and 7.4, 9.2 (wound area). The swelling ratio decreased with bentonite concentration, but did not fall below 6. The rate of drug release was slowest at a pH value of 4.5 and fastest at a pH value of 9.2. The rate of drug release decreased with bentonite concentration. The presence of bentonite prevents the rapid dissolution of alginate at the higher pH, ensuring the controlled release of the entrapped drug.