A variety of human disorders are characterized by, or associated with, tissue hypoxia and manipulation of the HIF pathway has been predicted to significantly alter their clinical course. Early hopes of developing revolutionary PHD-based therapies have yet to translate into novel licensed pharmaceutical agents. Diabetic nephropathy, a progressive development of renal insufficiency in the setting of hyperglycaemia is the major single cause of chronic renal failure (CRF) in which hypoxia plays a critical role. The study investigated the efficacy of cobalt chloride (CoCl2), a Prolyl 4-hydroxylase (PHD) inhibitor in amelioration of renal injury, endothelial dysfunction as well as its effect on hyperglycemia in uninephrectomized diabetic rat. The study signifies the effect of CoCl2 in amelioration of renal failure and associated vascular dysfunctuion.