The laser technique, developed by Dr Gregg Homer from California-based Stroma Medical, works by eliminating the brown melanin that is present in the anterior layers of the iris.
The technique is yet to get approval from regulatory bodies in the US, but the company said that preliminary studies show the surgery is safe.
So far, 17 patients in Mexico and 20 in Costa Rica have undergone the treatment.
"The fundamental principle is that under every brown eye is a blue eye," said Homer, adding that there is no actual blue pigmentation in the eye.
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The company said the treatment disrupts the layer of pigment, causing the body to begin removing the tissue naturally.
While the USD 5,000 procedure takes only 20 seconds, the blue eyes will take several weeks to emerge.