Diabetic ulcer patients accounts for a good majority of cases attending the hospital and getting admitted, many methods are in use for the management of such cases other than conventional dressing. The present study is undertaken to compare the efficacy of a novel lipocolloid silver dressing (Technology Lipido-Colloid-Ag) with conventional dressing for Wagner Grade I and lI ulcer in terms of progression of granulation tissue as percentage of total ulcer surface area, number of sitting for debridement. In the study its seen that lipocolloid silver dressings showed better reduction in the amount of slough covering the wound surface, granulation appeared better in ulcers treated with lipocolloid silver dressings than conventional dressings and patients managed with lipocolloid silver dressing required lesser number of debridement than conventional dressing group. The mean duration of hospital stay was less among those patients in lipocolloid group than conventional group and the number of dressings required for wound healing is less for lipocolloid silver dressings than conventional dressing . It was seen that lipocolloid silver dressings provide better wound healing by reducing the amount of slough and increasing the granulation formation.