A compact spotting scope includes a housing with an outer surface having a grasping region sized and shaped to fit in a user's hand. An optical element positioned within the housing is adjusted by manually rotating a side-mounted adjustment knob that extends laterally from the outer surface of the housing opposite the grasping region. The side-mounted position of the adjustment knob allows the arm and wrist of the focusing hand to be maintained in an ergonomic position during manipulation of the adjustment knob, thereby further facilitating steady support. An internal support member of the spotting scope includes a frame portion and a generally tubular portion, which are preferably formed together of unitary one-piece construction for aligning optical elements of the spotting scope.