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• First use of gold nanoparticle for the treatment of diabetic retinopathy. • FA-b-PEG modified gold nanoparticle loaded with Sorafenib tosylate used as the drug delivery system. • Targeted delivery for vascular endothelial growth factor. • Biocompatible formulation displayed prevention of neovascularisation of the retinal blood vessels. Preparing a controlled release dosage form for specific locations within the body is one of the most challenging tasks in the present times. Moreover, green synthesis of metal nanoparticles is attaining greater significance because of their high biocompatibility and negligible toxicity. Gold nanoparticles, among them, are considered to be one of the best modes of drug delivery system for the treatment of various diseases. The excellent properties of gold nanoparticles make them a potential carrier for carrying and releasing drugs at the specified location in a controlled manner. In this research, gold nanoparticle (AuNPs) has been prepared by green synthesis for the treatment of diabetic retinopathy. These AuNPs has been further modified with FA-b-PEG copolymer for the targeted delivery of the drug Sorafenib tosylate. The selected drug works on VEGF receptors in the region of retinal neovascularisation. The optimized dosage form prepared from gold chloride and ginger extract has been characterized. Histopathological studies as well as fundus photography has been used for the in-vivo characterisation of the prepared dosage form and it has been found that it can be quite an effective treatment for retinal neovascularisation in patients of diabetic retinopathy. [ABSTRACT FROM AUTHOR]