The present study aimed at assessing the possible effect of stem cell therapy on induced diabetic keratopathy in albino rat, compared to possible protective effect of curcumin.Twenty male albino rats were divided into 4 groups: Group1 (Control group) of 4 rats. Group 2 (Diabetic group) of 6 rats each receiving single IP injection of 50mg/kg streptozotocin (STZ) dissolved in citrate buffer. Diabetes was confirmed 3 days later. The animals were subdivided into subgroups 2A and 2B, each of 3 animals sacrificed 6 and 10 weeks following confirmation of diabetes respectively. Group 3 (Stem cell therapy group) of 5 rats injected with cultured stem cells 6 weeks following confirmation of diabetes. Cord blood collection, stem cells isolation, culture and labeling were performed. Group 4 (Curcumin group) of 5 rats received 0.05% curcumin (w/w). The animals were sacrificed 10 weeks following confirmation of diabetes. Eye specimens were subjected to histological study (H&E), histochemical study (Prussian blue stain), immunohistochemical study (CD34), morphometric and statistical analysis. In subgroup 2A, the central part of the cornea exhibited multiple epithelial cells with dark nuclei and vacuolated cytoplasm, separation of substantia fibers, thickened epithelium with irregular surface and wavy basement membrane. Thickened corneal and conjunctival epithelia with dark nuclei and vacuolated cytoplasm, dilated blood vessels and separated connective fibers were detected at the limbus. In subgroup 2B, the central cornea showed separation of the surface epithelial layers. Focal epithelial discontinuity and reduced corneal thickness were evident. Corneal and conjunctival epithelia formed of less number of layers were seen. In group 3, few cells with vacuolated cytoplasm and dark nuclei were found in the corneal and conjunctival epithelia at the central part and at the limbus with more number of epithelial layers. In group 4, vacuolation of the cytoplasm and dark nuclei of multiple epithelial cells existed in multiple fields, besides less separation of the substantia fibers.The limbus showed fewer cells with dark nuclei and more layers in the corneal and the conjunctival epithelia. Control sections were Prussian blue and CD 34 negative. Stem cell therapy group revealed Prussian blue and CD 34 positive cells of variable shapes near blood vessels, between the connective tissue fibers of the sclera, at the conjunctival epithelium, in the substantia propria and at the corneal epithelium. The mean area of dark nuclei and vacuolated cytoplasm denoted a significant increase in diabetic subgroups and in curcumin group compared to control and stem cell therapy groups.A definite ameliorating effect of stem cell therapy was detected on diabetic keratopathy. Being compared to protective effect of curcumin, it was more effective in limiting epithelial changes.