Capsaicin, a secondary metabolite produced in capsicum, is in high demand in pharmaceutical industry because of its various medicinal properties. Currently, the supply of capsaicin depends upon its extraction from capsicum fruits. This limits the production of capsaicin as it depends upon agricultural produce. The current review has compiled information from various literature published on chemistry and importance of capsaicin along with its method of production. It also reviews the process of in vitro production of capsaicin through plant tissue culture, strategies of increasing capsaicin accumulation and its advantages over extraction from fruits and artificial synthesis.