ABSTRACT.Purpose: To compare in a randomized, controlled trial topical 1.5% dexamethasone c-cyclodextrin nanoparticle eye drops (DexNP) with posterior subtenon injection of triamcinolone acetonide in diabetic macular oedema (DME). Methods: In this prospective, randomized, controlled trial, 22 eyes of 22 consecutive patients with DME were randomized to (i) topical treatment with DexNP 33/day (4 weeks), 32/day (4 weeks) and 31/day (4 weeks) or (ii) one posterior subtenon injection of 20 mg triamcinolone acetonide. Study visits were at baseline and 4, 8, 12 and 16 weeks. Results: The logMAR (Snellen) visual acuity (mean AE SD) improved significantly with DexNP from 0.41 AE 0.3 (Snellen 0.39) to 0.32 AE 0.25 (0.48) and 0.30 AE 0.26 (0.50) at 4 and 8 weeks, respectively. One-third of the DexNP group improved more than 0.3 logMAR units. For triamcinolone, logMAR changed significantly from 0.42 AE 0.28 (0.38) at baseline to 0.32 AE 0.29 (0.48) at 4w and 0.33 AE 0.37 (0.47) at 12w. The central macular thickness (CMT) decreased significantly with DexNP from 483 AE 141 lm to 384 AE 142 lm at 4w and 342 AE 114 lm at 8w. For triamcinolone, CMT decreased significantly at all time-points: 494 AE 94 lm, 388 AE 120, 388 AE 145, 390 AE 136 and 411 AE 104 lm at 0, 4, 8, 12 and 16 weeks, respectively. There was a modest increase in intraocular pressure (IOP) at all time-points with DexNP while no increase was seen with triamcinolone. Serum cortisol was affected by both treatments. Conclusion: Topical DexNP significantly improve visual acuity and decrease macular thickness in patients with DME. The effect is similar to that from subtenon triamcinolone. A modest increase in IOP was seen with the nanoparticle eye drops, but IOP normalized after the discontinuation of treatment.