A disrupted oxygen environment in the retina of severely premature neonates is thought to be a key factor in the development of retinopathy of prematurity (ROP). This review describes our understanding of intraretinal oxygen distribution and consumption in a range of animal models, including species with naturally avascular retinas and models of induced occlusion of the retinal vasculature. The influence of graded systemic hyperoxia on retinal oxygenation is also discussed along with modulation of retinal oxygen metabolism. The differences in retinal oxygenation between developing and mature retinas are also described. Comparisons are made with studies in the monkey retina in order to assess possible similarities in behaviour between rat and human retinas. Pathogenesis mechanism and possible intervention strategies during the diseased processes in ROP are proposed based on our current knowledge.