Grid laser is recognized as an extremely effective treatment of diabetic macular edema, although it causes significant chorioretinal damage when applied and scars that expand with time. The purpose of this study is to compare the effects of two methods of grid laser photocoagulation for diabetic macular edema on high-contrast target discrimination in the central visual field. Grid laser photocoagulation with the Early Treatment Diabetic Retinopathy Study intensity burns has previously been shown to cause full retinal thickness burns. In this study, it produced severe destruction of paraxial vision, most marked at 2 degrees to 10 degrees from fixation. Grid laser using threshold-level burns, in contrast, appeared to produce some improvement in thresholded high-contrast vision at eccentricities from 2 degrees to 3 degrees outward, but failed to normalize visual parameters at these intercepts or at intercepts closer to fixation. Therefore, the recommendations are made (1) to use screening modalities other than biomicroscopic perception of retinal swelling to define earlier opportunities for intervention in the diabetic maculopathic process and (2) to use threshold or sub-threshold methods of laser grid photocoagulation for treating leakage and/or edema.