A cosmetic bandage (1) and method for its manufacture for external application to a wound, injury, blemish or other disfigurement of the human skin to help facilitate healing and for providing cosmetic benefits. The bandage (1) preferably includes a transparent backing layer (2) and an adhesive layer (5) applied to the first side (10) of the backing layer (2). An absorbent pad (3) is attached to a portion of the first side (10) of the backing layer (2). The topside (20) of the absorbent pad (3) is visible through the transparent backing layer (2). The top side (20) of the absorbent pad (3) is coated or embedded with one or more nontoxic pigment compositions which are derma or skin matching, having a melanin likeness in appearance so as to substantially match human skin tones and colors. A method for manufacturing a cosmetic bandage (1) is useful in the external application.