Diarrhoeal diseases are still a major cause of morbidity and mortality among children in many developing countries, particularly in sub-Saharan Africa. In Eritrea, diarrhoeal disease is one of the most frequent causes of illness and a major contributor to mortality among children. Yet, except for some descriptive reports by the National Statistics Office of Eritrea, no systematic study of the factors that influence the prevalence of diarrhoeal morbidity among young children in Eritrea was carried out. This study examined the effects of some environmental and socioeconomic factors that were associated with childhood diarrhoea in Eritrea. The study used data collected by the Demographic and Health Survey (DHS) in Eritrea in 1995. Results of the study showed that the environmental and socioeconomic conditions of the population were significant predictors of diarrhoeal morbidity. The study also found an important association of diarrhoeal morbidity with the age and the number of children, particularly with high prevalence of diarrhoea at the age of weaning and in households with a large number of children.