Introduction: Diabetic foot ulcers constitute one of the most important complications of diabetes mellitus, with a staggering 25% lifetime risk. If not treated promptly, progression of infection and sepsis may necessitate a limb amputation. Studies from western population have shown significant implication of vacuum-assisted closure (VAC) therapy in various wounds including Diabetic foot ulcers. Considering the early onset of complications including diabetic foot ulcers in Indian diabetic patients due to differences in lifestyle, culture, socioeconomic status and health education, the role of VAC therapy needs to be studied to establish the efficacy and safety of VAC therapy in the management of diabetic foot ulcers in an Indian population. Materials and methods: Randomized controlled trail conducted in the Department of General surgery PESIMSR from January 2018 to December 2018, in patients with Grade 1 and 2 diabetic foot ulcers (As defined by Wagner‟s classification). Results: Granulation tissue appeared in 28 patients by the end of week-2 in group I, while it appeared in 11 patients by that time in Group II. Wound was favourable for grafting in Group I compared to Group II by 4 weeks. Conclusion: In the present study it was concluded that the rate of granulation tissue formation, overall graft survival and patient compliance was better in negative pressure dressing group compared to conventional dressing group.