OBJECTIVE To assess corneal endothelial toxicity of diluted povidone-iodine (PI) in vivo and in vitro. METHODS Cell Biology Laboratory and the Laboratory for Intraocular Microsurgery and Implants, Goldschleger Eye Research Institute, Sackler School of Medicine, Tel-Aviv University, Chaim Sheba Medical Center, Tel-Hashomer, Israel. METHODS In an in vitro study, cultured bovine corneal endothelial cells were exposed to diluted PI. The degree of cell damage was determined by staining with trypan blue and by comparing the results to those in a control group. In an in vivo study, a single dose of diluted PI was injected into the anterior chamber of rabbit eyes, completely replacing the aqueous humor. The eyes were evaluated by clinical examination, specular microscopy, pachymetry, pneumotonometry, and histopathology and compared to a control group injected with a balanced salt solution. RESULTS In vitro, PI concentrations of 0.05% or less did not induce endothelial cell damage. Significant damage was observed with a PI concentration of 0.1%. Calf serum concentrations of 1% and higher in the culture media protected the endothelial cell monolayer from cytotoxic damage by PI. Aqueous humor did not have a similar effect. In vivo, PI concentrations of 0.1% or less did not induce changes in corneal endothelium morphology or function as assessed by specular microscopy and pachymetry. A PI concentration of 1% served as a positive control, causing corneal edema and endothelial cell loss as demonstrated by pachymetry, histopathology, and elevated intraocular pressure. CONCLUSIONS The concentrations of PI tolerated by animal endothelium in vitro and in vivo were higher than the reported bactericidal levels. These findings justify further investigation of the safety and efficacy of PI for intracameral prophylaxis during surgery.