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Treatment depends on the stage of Diabetic retinopathy
Early nonproliferative diabetic retinopathy (NPDR)
Let your doctor know if you are experiencing diminished vision or any other eye problems like blurriness.
Retinal imaging (Fundus Fluorescein Angiography, Optical Coherence Tomography) followed by retinal laser treatment is indicated in this stage of retinopathy. Recently, Intravitreal injections (injections in the eye), which maybe Anti VEGF (Avastin, Lucentis) or steroid injections have been found to be quite effective in reducing the retinal swelling.
Proliferative diabetic retinopathy (PDR)
Retinal imaging followed by retinal laser treatment. Multiple sittings of laser treatment are often required. Intravitreal injections are often indicated to reduce the retinal swelling and to help in regression of the new vessels.
Surgery: Vitrectomy to remove vitreous humor, cut fibrous traction bands and repair retinal detachments so as to restore vision.
You may also find this Diabetic Retinopathy FAQ by Dr. Charu Gupta useful