This is a 24-month interim prospective observational study of 95 previously steroid challenged patients (115 eyes) receiving intravitreal 0.2ug/day fluocinolone acetaid (FAC) implant for diabetic macular oedema (DMO) treatment. The mean IOP for pre- and post- FAC implants were stable, with IOP-related procedures (Pre-FAC of two cases; two trabeculoplasties and four IOP-lowering surgeries post-FAC). The mean visual acuity was stable post-FAC (mean improvement of one to three letters) and fewer DMO treatments per year post-FAC. Mean central subfield thickness (CST) was significantly reduced at 24 months post-FAC (p<0.001). The percentage of patients with CST <300um was significantly increased post-FAC compared to baseline (46.3% at 12 months, p=0.009, versus 42.2% at 24 months, p=0.041). The authors concluded that FAC implant is a valuable tool in the management of DMO for selected patients after a prior steroid challenge.