Incoherent photoproduction of the eta meson on the deuteron is studied for
photon energies from threshold to 800 MeV. The dominant contribution, the g
ammaN- etaN amplitude, is described within an isobar model. The final state
interaction derived from the CD-Bonn potential is included and found to be
important for the description of the production cross section close to thr
eshold. Possible effects from the etaN final state interaction are discusse
d.