Diabetes mellitus is one of the most common endocrine disorders and is rapidly increasing in prevalence worldwide. About 15-20 % diabetes patients develop diabetic ulcers especially in the foot. Vacuum pressure therapy for diabetic ulcer is shown to be beneficial in variety of wounds. It is used as an adjunct or alternate to surgery for wide range of wounds with an aim to decrease morbidity, cost, duration of hospitalization and increase patient comfort. Materials and Method: This study was conducted over 60 patients who were randomly allotted to 2 groups after initial wound debridement. Group A received vacuum therapy for wounds while Group B received Conventional dressing. Results were compared with time of granulation tissue formation. Results: There was statistically significant difference between two groups in time of granulation tissue formation and mean time of healing. Group A had better rate of granulation tissue formation and Mean time to achieve >75% granulation tissue cover was significantly less in Group A.Conclusion: Vacuum assisted closure therapy is more effective than conventional dressing for wound healing in diabetic foot ulcers.