  Incoherent photoproduction of the $\eta$-meson on the deuteron is studied for
photon energies from threshold to 800 MeV. The dominant contribution, the
$\gamma$N-$\eta$N 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
threshold. Possible effects from the $\eta N$ final state interaction are
discussed.
