Hi - yes I believe Iodine can help with scars. In 2003 I had a lichen simplex chronicus lesion removed off my upper back (right on the backbone). Because of its location, it healed with an ugly darkish scar and I was always self-conscious about it when wearing tank tops, etc. Plus, it would still kinda scab-over.
Anyways, since I started Iodoral in late November 2009, my mom commented that my scar is "looking really good" and is healing up. I have also noticed that it isn't as dark and it has not scabbed up once since the beginning of December. I am hoping that the healing will continue until summer!! I have also noticed my facial skin is really, really nice as well - no zits, not greasy.