In this study we show how the Pattern ERG (PERG) can be used to distinguish between optic nerve and retinal disease. Records from eyes with RBN and delayed visual evoked responses are compared with those recorded from the normal fellow eyes. In optic nerve disease there is a selective reduction of the later negative component of the PERG. PERGs were also recorded from patients with mild diabetic retinopathy. These were divided into three groups on the basis of the delay in their Visual Evoked Potential (VEP). The amplitude of both positive and negative components of the PERG fall with increasing severity of the disease thus showing that the abnormally long delay in VEP found in some cases is due to retinal disease rather than optic nerve disease.