Diabetic retinopathy causes the plurality of blindness among the working class of America. This review focuses on the biochemistry and pathophysiology of the pancreatic cells during the development of diabetes as well as the effects that diabetes has on the Müller cells and pericytes of the retina at the cellular and molecular levels. In addition, the current research on some of the treatment options for diabetic retinopathy will be presented. This review is valuable to the scientific community because it presents a side-by-side summary of the pathogenesis of diabetes and diabetic retinopathy based on the current body of research.