Aim: This study is aimed to estimate the incidence of retinopathy of prematurity and to identify the risk factors which predispose to retinopathy of prematurity. Material & Methods: The present prospective study was conducted at Ophthalmology department of tertiary care centre in Aurangabad, India from September 2010 to May 2013. Total 150 preterm infants admitted to the neonatal intensive care unit or discharged were included in this study. Diagnosis of ROP was done by binocular indirect ophthalmoscopy and graded into stages and zones as per the international classification of ROP. The data was analysed by using the SPSS-23 program and applying the chi-square test. Results: Of the total 150 infants screened, ROP was seen in 71 infants with the overall incidence of 47.33 %. The stage I ROP was with the highest incidence (22%), followed by decreased incidence pattern in stages II, III, IVa. There were no patients with stage V. The highest percentage of retinopathy of prematurity was seen in infants with gestational age < 28 weeks and extremely low birth weight (<1000 g) infants. The oxygen administration for more than 2 days (p= 0.0001), sepsis (p=0.001), intraventricular haemorrhage (p=0.001), blood transfusion (p=0.001) and respiratory distress syndrome (p=0.01) were found to be statistically significant for the development of retinopathy of prematurity. Conclusion: All high risk babies should be screened for ROP as early screening and intervention can help to increase the child’s chances of better vision and hence better quality of life and also reduce the load of paediatric blindness due to ROP.