Pharmaceutical industry involves major chemicals, reagents, solvents, catalysts and almost all types of organic reactions for synthesis of active pharmaceutical substances. Therefore, many chemicals and chemical processes involved are hazardous, toxic and may show adverse effects on human health and environment. Pharmaceutical companies can influence and improve the environmental performance with utilizing green chemistry. Green chemistry is being employed to develop revolutionary drug delivery methods that are more effective and less toxic and could benefit millions of patients. Green chemistry has grown from a small idea into a new approach to the scientifically based environmental protection. By using green chemistry procedures, we can minimize the waste of materials, maintain the atom economy and prevent the use of hazardous chemicals. Researchers and pharmaceutical companies need to be encouraged to consider the principles of green chemistry while designing the processes and choosing reagents.