This study was carried out in 388 premature babies for incidence of retinopathy of prematurity, foetal and maternal risk factors to design an effective screening program for ROP. Further, the efficacy of mode of treatment was evaluated. Preterm neonates with birth weight ≤ 1500 grams and/or gestation age ≤ 32 weeks; and selected patients with birth weight between 1500 to 2000 grams or gestational age > 32 weeks but ≤ 35 weeks with unstable clinical course were included in the study. The incidence of any stage of ROP in this study was 23.70%. Majority of patients (88.64%) developed mild forms of ROP (stage 1 and 2). On univariate analysis, the significant risk factors predisposing to ROP were low gestation age, low birth weight, respiratory distress, unmonitored oxygen supplementation, sepsis, blood transfusion, surfactant use and metabolic acidosis. Significant maternal risk factor was pregnancy-induced hypertension. On multivariate logistic regression, low gestational age, unmonitored oxygen supplementation, use of surfactant and pregnancy induced hypertension were found to be independent risk factors. The majority of cases (70.65%) of ROP of stage 1 and 2 without plus disease regressed without any treatment. Rest 29.35% cases needed treatment, and were treated with Diode laser photocoagulation to avascular retina. Regression occurred in all the cases.