Objectives: To identify risk factors significantly associated with retinopathy of prematurity (ROP) and evaluate the usefulness of digital funduscopy for ROP screening in a regional neonatal unit in Townsville, Australia. Method: This is a retrospective study. Basic data was retrieved from the department's prospectively maintained database and stored in the digital camera (Retcam) data storage device. ROP candidates were defined as babies who were born with a birth weight at or less than 1250 g and/or, born at or before 28 weeks. Results: One hundred babies satisfied the criteria for inclusion into the study. There were 44 male neonates. Birth weights ranged from 470-1342g (mean 986±177). Female babies were significantly smaller than males (p<0.05). Mean gestation at age was 27.2±1.9 weeks. There was no significant difference in gestational age of male and female babies (p>0.05). Twenty three babies had ROP. Retinal images from 6 babies were sent for remote expert opinion and 2 babies were transferred for treatment. Conclusions: ROP is significantly associated with prematurity. More clinical trials on bigger cohorts are necessary to evaluate digital funduscopy on ROP screening.