A gel-type adhesive composite bandage (10) is provided which can be used in the treatment of fungus-involved or discolored toe nails, or for general wound treatment. The bandage (10) includes a base (12) having a preformed recess (16), with a humectant-containing gel (18) within the recess (16). An adhesive-coated web (14) is applied over the base (12) and gel (18). The web (14) is strippable from the base (12) with the gel (18) adhered to the web (14). In the use, the web (14) is removed from the base (12), and the exposed gel (18) is applied directly to the affected toe mail or wound. The remaining portions of the adhesive-coated web (14) is then used to maintain the web (14) and gel (18) in place. The gel (18) preferably includes a polymeric matrix having a substantial quantity of water soluble humectant (for example, glycerin) entrapped within the matrix.