This chapter explores the relation between drug biotransformation and pharmacological activity. More precisely, it surveys the formation of active metabolites and exemplifies cases of metabolites as or more active than the parent drug. Because very few drug conjugates are pharmacologically active, the focus is on metabolic reactions of functionalization (i.e., phase I), namely, oxidations, reductions, or hydrolyses.The first section sets the scene by explaining the pharmacokinetic/pharmacodynamic (PK/PD) interplay that underlies drug action, and the existing continuum ranging from drugs devoid of active metabolites, to drugs yielding some active metabolite(s), to prodrugs whose activity is due solely to the metabolite. Soft drugs are briefly exemplified since they nicely illustrate the concept of drugs designed to be rapidly metabolized to inactive, atoxic metabolites.