There is an increasing preponderance of literature that suggests an important role for PKC in the development of diabetic retinopathy. Hyperglycemia activates the DAG-PKC pathway, which in turn regulates a number of vascular functions. Studies show that PKC has a direct effect on retinal blood flow and leukostasis, ECM deposition and basement membrane thickening, and vascular permeability and angiogenesis. Recent investigations have examined the potential role of PKC inhibitors in the treatment of diabetic retinopathy. This chapter outlines those investigations and discusses ongoing clinical trials in this area.