AbstractWe review the literature and relevant standards related to image quality characterization of medical devices using near‐eye displays (NEDs). First, we discuss the experimental considerations for NED measurements and the methods for aligning the light measuring device (LMD) to the NED. Second, we discuss measurement methods for several critical image quality characteristics, namely luminance, contrast, spatial resolution, geometrical distortion, and spatiotemporal properties including the methods' limitations. These characteristics were selected due to the importance of medical device NED applications. Finally, modeling methods for image quality of NEDs are discussed. Accurate and reproducible evaluation methods for image quality are essential for the safe and effective adoption of augmented and virtual reality NEDs into medical applications.