A multifunctional ophthalmic instrument and method for assessing ocular surface health is disclosed. The instrument includes an illumination projector, which contains broadband light sources, covering visible and near infrared spectra, a zoom lens system with continuously variable magnification, a detection system to record said images, and a computer to display and analyze said images. Preferably, an eye alignment system with a beamsplitter is used to provide a fixation target for the eye under assessment. An optional thermal camera, operating in the long wave infrared spectrum is aligned paraxially to the zoom lens system. Further, an optional separate video camera is used to monitor the blink rate. Corneal topography and tear break up time could be evaluated with a low magnification, and microscopic features, such as tear meniscus height, meibomian gland orifices, are imaged at a high magnification. Meibomian glands and lipid layer thickness are analyzed with visible and near infrared spectra.