Diabetic retinopathy (DR) is a progressive microvascular complication of diabetes and a leading cause of vision impairment worldwide. Despite advancements in pharmacotherapy, challenges such as poor intraocular bioavailability, rapid drug clearance, and the restrictive blood-retinal barrier hinder effective treatment. Recent innovations in ophthalmic drug delivery systems offer promising solutions to these limitations. This review explores advanced drug delivery strategies, including biodegradable intravitreal implants, nanoparticle-based carriers, and gene therapy approaches, which enhance targeted drug delivery, prolong therapeutic effects, and reduce adverse systemic exposure. Sustained-release formulations of corticosteroids and anti-vascular endothelial growth factor (anti-VEGF) agents have demonstrated improved clinical outcomes in DR management. Additionally, novel biomaterial-based hydrogels, microneedle arrays, and cell-based therapies are emerging as potential game-changers in retinal drug delivery. Cutting-edge approaches such as CRISPR Cas9 gene editing, stem cell-derived exosome therapies, and artificial intelligence (AI) -driven precision medicine are further expanding the therapeutic landscape. While these advancements show significant potential, challenges such as drug stability, biocompatibility, and patient adherence must be addressed to ensure translational success. Future research should focus on optimizing pharmacokinetic properties, integrating nanotechnology with personalized medicine, and developing minimally invasive delivery platforms. A multidisciplinary approach combining biomedical engineering, molecular biology, and computational modelling will be essential for advancing DR therapeutics. This review provides a comprehensive analysis of the evolving landscape of ophthalmic drug delivery, highlighting the potential of next-generation technologies to transform DR treatment and improve patient outcomes.