Background: Peripheral diabetic neuropathy (PDN) may be associated with nerve compression neuropathies including tarsal tunnel syndrome (TTS). Low levels of laser therapy (LLLT) is a suggested treatment. The present prospective study investigated the effect of LLLT on the clinical and neurophysiological parameters in diabetic patients with TTS. Method and Materials: Thirty diabetic patients with TTS aged 40-60 years received LLLT. LLLT was achieved using a double diode laser device (LUMIX® 2 device, Fisioline, Italy) emitting at 904 nm. Patients received 3 sessions weekly for 12 weeks. Neurophysiological parameters and visual analog scale were measured before and after 12 weeks of LLLT. Results: Comparison between pre and post-treatment outcome parameters revealed significant improvement of VAS (8.5 ± 1.2 versus 4.6 ± 1.7, p<0.001), motor distal latency (6.7 ± 0.9 versus 5.1 ± 0.9 ms, p<0.001), sensory peak distal latency (4.6 ± 0.5 versus 3.2 ± 0.3 ms, p<0.001), motor amplitude (2.6 ± 0.6 versus 4.1 ± 0.5 mV, p<0.001), medial planter amplitude (6.1 ± 3.2 versus 15.1 ± 3.5 mV, p<0.001) and medial planter amplitude (4.3 ± 2.0 versus 12.5 ± 1.6 mV, p<0.001). Conclusion: LLLT has a positive impact on clinical and neurophysiological parameters in diabetic patients with TTS.