Exudate consists of fluid and leukocytes that move to the site of injury from the circulatory system in response to local inflammation. This inflammatory response leads to blood vessel dilatation and increased permeability, resulting in increased production of exudate. The nature and quantity of exudate depend on the nature and severity of the tissue damage. The exact amount of wound exudate and moisture to promote moist wound healing is unknown. This moisture balance is essential to promote healing and is oftentimes a major challenge to the wound care provider. This article will explore the benefits of wound fluid as well as the detrimental impact on wound healing. Assessment and management will also be briefly discussed.