Drug-induced pulmonary parenchymal disease (DIPPD) can be caused by a variety of agents, including antibiotics, chemotherapeutic drugs, antiarrhythmic agents and non-steroidal anti-inflammatory drugs (NSAIDs). DIPPD includes acute bronchospasm, organizing pneumonia, alveolar hypoventilation and hypersensitivity reactions. History, physical examination and investigations are required mainly to exclude other causes of lung diseases. Investigations may include chest radiography, pulmonary function testing and bronchoscopy with bronchoalveolar lavage (BAL). Recognition of DIPPD is difficult because the clinical, radiologic, and histologic findings are nonspecific. Management includes drug withdrawal and in some cases corticosteroid therapy. In this article we reviewed the various drugs known to cause pulmonary parenchymal diseases, various patterns of parenchymal diseases observed and their management.