Retinal photocoagulation and vitrectomy both reduce diabetic macular edema and neovascularization in diabetic retinopathy. We suggest that this clinical effect is based on the effect these treatment modalities have on retinal oxygenation, and we present a theory to explain why retinal photocoagulation and vitrectomy influence edema and neovascularization in diabetic and other ischemic retinopathies.