This paper reports on the relationships between the performance of retro-reflectors and the sharpness of an aerial image formed with aerial imaging by retro-reflection (AIRR). We have measured the retro-reflector divergence angle and evaluated aerial image sharpness by use of the contrast-transfer function. It is found that the divergence angle of the retro-reflected light is strongly related to the sharpness of the aerial image formed with AIRR.