The placebo effect has shown prominent results with scientific evidence. It is the methodology of giving placebos that raises questions. There is limited investigation/research on the placebo pain-relieving effects. As the ethical concerns have contended. Many medical service providers use placebo habitually and patients are accepting these interventions. The positive patient-clinician outlook is very essential to develop a clinically meaningful placebo effect in chronic pain patients. For clinical use of placebo, it is important to understand that placebo-based clinical trials yield ethical possibilities and boundaries. Since the placebo effect contributes to active responses, it is possible to enhance the positive placebo effect. Placebo is psycho-neurobiological responses capable of modulating pain and producing variable changes of the different neurobiological bodies at emotive and analytic levels. This development can be achieved by different contextual factors (CFs) presented in the therapeutic encounter between patient and healthcare provider, such as healing rituals and signs. The CFs directly impact the quality of the therapeutic outcome. When we say chronic pain, we know the patient is suffering from some condition for a long period of time. In this scenario, there are high chances of a patient taking some pain management medication. Most chronic pain conditions such as arthritis, osteoarthritis, IBS, fibromyalgia, etc. cannot be cured. Pain with time increases as the patient gains tolerance to the medication therefore the doses of the medication are increased due to no effectivity of the drug is changed. This continues lifelong, due to these heavy pain medications given with the pain causative condition medication causes various negative effects on the body. In Clinical psychology placebo, drug therapy can be very helpful in depression, anxiety disorders, mood disorders, psychotic disorders, etc.  Every year, we learn new data about the clinical application of the placebo effect.