Previously, we showed that peripheral neuropathy of the bone marrow was associated with loss of circadian rhythmicity of stem/progenitor cell release into the circulation. Bone marrow neuropathy results in dramatic changes in hematopoiesis that lead to microvascular complications, inflammation and reduced endothelial repair. This series of events represents early pathogenesis before development of diabetic retinopathy. In the present study, we characterized early alterations within the bone marrow of streptozotocin (STZ)-induced diabetic rats following treatments that prevent experimental, peripheral neuropathy. We asked whether bone marrow neuropathy and the associated bone marrow pathology were reversed with treatments that prevent peripheral neuropathy. Three strategies were tested: inhibition of neutral endopeptidase, inhibition of aldose reductase plus lipoic acid supplementation and insulin therapy with antioxidants. All strategies prevented STZ-diabetes induced loss of nerve conduction velocity and corrected the STZ-diabetes associated increases of immunoreactivity for neuropeptide Y, tyrosine hydroxylase and somatostatin. The treatments also reduced levels of IL-1β, granulocyte colony-stimulating factor and MMP-2 in STZ-induced diabetic bone marrow supernatant and decreased the expression of NOX-2, NOS-2 and NF-κB1 mRNA in bone marrow progenitor cells. These therapies represent novel approaches to attenuate the diabetic phenotype within the bone marrow and may constitute an important therapeutic strategy for diabetic microvascular complications.