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