Diabetic kidney disease (DKD) is the most common cause of end-stage renal disease (ESRD) in the U.S. and worldwide. Current treatment for DKD includes strict glycemic control and normalization of blood pressure with renin-angiotensin-aldosterone system (RAAS) blockade. Although RAAS blockers slow progression of disease they do not generally prevent ESRD, and none of the studies with these agents in DKD included non-proteinuric patients, which make up an increasingly large percentage of diabetic patients now seen in clinical practice. Recent studies with glucagon-like peptide-1 receptor agonists and sodium-glucose co-transport-2 (SGLT2) inhibitors have shown beneficial renal effects, and the benefits of SGLT2 inhibitors likely extend to non-proteinuric patients. However, there remains a need to develop new therapies for DKD, particularly in those patients with advanced disease. A role of chronic low-grade inflammation in the microvascular complications in diabetic patients has now been widely accepted.Large clinical trials are being carried out with experimental agents such as bardoxolone and selonsertib that target inflammation and oxidative stress. The FDA-approved non-specific phosphodiesterase inhibitor pentoxifylline (PTX) has been shown to have anti-inflammatory effects in both animal and human studies by inhibiting the production of proinflammatory cytokines. Small randomized clinical trials and meta-analyses indicate that PTX may have therapeutic benefits in DKD, raising the possibility that a clinically available drug may be able to be repurposed to treat this disease. A large multicenter randomized clinical trial to determine whether this agent can decrease time to ESRD or death is currently being conducted, but results will not be available for several years. At the current time, the combination of RAAS blockade plus SGLT2 inhibition is considered standard of care for DKD, but it may be reasonable for clinicians to consider addition of PTX in patients whose disease continues to progress despite optimization of current standard of care therapies.