Pharmaceuticals (analgesics and non-steroidal anti inflammatory drugs- NSAIDS) though, a major human scientific development, have undoubtedly lengthened life spans, cured millions from deadly diseases, and made life comfortable and free from pain. This very success has now led to their emergence as rapidly growing environmental pollutants and contaminants. Paracetamol (4’-hudroxyacetanilide, acetaminophen or N-acetyl-p-aminophenol) is amongst the most popular pain killers and widely used analgesic and antipyretic drug which is used for relieving pain and fever as a non prescription drug, worldwide. Such huge consumption all over the world can be expected to result in the contamination of the environment and threat to human health, since residual drugs after usage, easily accumulate in the environment especially aquatic environment through human excreta and industrial effluents produced from paracetamol active ingredients production. Its presence has been found in the environment which has been detected drinking water, waste water and sewage treatment plant effluents. Recent researches focus on adverse effects of paracetamol usage and health hazards in the form of increasing behavioural disorders in offspring. Although chemical oxidation process is done for the treatment of waste water to remove paracetamol but severe reaction conditions, production of secondary pollutants as by products and huge operational expenses associated, leave no choice but to find other methods of treatment. Biodegradation of paracetamol by microorganisms is now being considered as an environment friendly alternative which has bearable cost. The widespread use of paracetamol and the scarcity of parallel and safe alternatives, its impact on the environment and on human health deserves further investigations and researches. The main aim of this review is develop comprehensive understanding on the percolation of paracetamol in environment through uncontrolled usage its toxic effects and proposed metabolic pathways of its biodegradation.