In this study, we propose and analyze an eco-epidemiological model with disease in prey and incorporated the effect of fear on prey species due to predator population. We assume that the prey population grows logistically in the absence of predator species, and the disease is limited to the prey population only. We divide the total prey population into two distinct classes: susceptible prey and infected prey. Predator populations are not infected by the diseases, though feed both the susceptible and infected prey. Due to the fear of predators, the prey population becomes more vigilant and moves away from suspected predators. Such a foraging activity of prey reduces the chance of infection among susceptible prey by lowering the contact with infected prey. We assume that the fear of predators has no effect on infected prey as they are more vigilant. Positivity, boundedness, and uniform persistence of the proposed model are investigated. The biologically feasible equilibrium points and their stability are analyzed. We establish the conditions for the Hopf bifurcation of the proposed model around the endemic steady state. As the level of fear increases, the system moves toward the steady state from a limit cycle oscillation. The increasing level of fear cannot wipe out the diseases from the system, but the amplitude of the infected prey decreases as the level of fear is increased. The system changes its stability as the rate of infection increases, and the predator becomes extinct when the rate of infection in prey is high enough though predators are not infected by the disease.