In the first year, an infant’s vision improves greatly. From the blurry vision that he/she may have, to being able to see quite clearly. At birth, he/she can detect light, shapes and motion. He/she can only focus on things that are 20-30cm away. He/she will be able to make eye contact by the end of the first month. At three to five months old, the baby starts to differentiate different colours and could focus on smaller objects. His/her depth perception develops and would be able to focus on objects that are 1m away. The baby could also track movements of objects around him/her. By the time the baby reaches one year of age, he/she should be able to see quite clearly. He/she should be able to recognise familiar faces. However, the baby's vision will continue to develop and would likely be fully developed by three to five years old. Here’s an article highlighting the developmental milestones of your baby’s vision: http://www.babycentre.co.uk/a6508/developmental-milestones-sight
By 12 months old, he should be able to see very clearly. However, newborns lose that squinty look when they're trying to focus by the first month. http://www.babycenter.com/408_when-will-my-baby-see-clearly_1368493.bc
Babies are born with a full visual capacity to see objects and colors. However, newborns are extremely nearsighted (far away objects are blurry): Newborns can see objects about 8-15 inches away quite sharply.
Around 6 months old your baby can see quite clearly instead of blurred image.
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