The “third-generation” cooking oil based drug, named plasma activated oil (PAO), is produced in cheap olive oil by a single-step, room temperature, energy-efficient, and environment-friendly dry plasma-enabled process. The streamer-surface discharge generates abundant energetic species, atomic oxygen at the plasma–oil interface. The otherwise challenging dissociation of C═C double bonds by energetic species and oxidation by the plasma generated atomic oxygen is the key mechanism to produce the H2O2 active species and carboxylic acid in the PAO. It is shown that the peroxide value and acid value of PAO are 7.5 times and 57% higher than those of the traditional ozonated oil, respectively. Different from plasma activated water whose shelf life was less than 1 week, PAO could be stored at room temperature for at least 3 months, and a shelf life of up to 1 year is expected. We further reveal that the PAO can not only sterilize the wound, but also promote more release of growth factor such as VEGF and CD34; therefore, the wound healing of PAO is 28.5% faster than that of the control group.