CADD is cost effective and used for biological trials to know about the drug receptor interaction. CADD involves quantum mechanics, molecular mechanics, molecular dynamics, structure-based drug design (SBDD), ligand-based drug design (LBDD), homology modelling, molecular docking, ligplot analysis, de novo drug design, pharmacophore modelling with mapping, virtual screening, QSAR, In-silico ADMET prediction etc. Structure Based Drug Design (SBDD) includes binding site identification, docking-stocking, virtual screening, selection of compound, lead compound optimization. Ligand Based Drug Design (LBDD) includes study of (QSAR) quantitative structure activity relationship, pharmacologic modelling with steps followed as structure- based drug design. As we can see CADD help to recognize suitable characteristics of a drug and its compatibility to get an easy hand in pre- clinical trials. The main objective of CADD study includes establishment of research projects to discover novel chemical entities with the potential to be developed into novel therapeutic agents.