This document reviews penicillin allergy epidemiology, clinical consequences, and methods for evaluation. It finds that approximately 10% of Americans report a penicillin allergy, but clinically significant reactions are uncommon (<5%). While many patients report penicillin allergies, being labeled as allergic often leads to use of broad-spectrum antibiotics that increase risks of resistance, C. difficile infection, and adverse events. A comprehensive allergy history can determine if a patient is at low, moderate, or high risk of reaction. Low-risk patients can often be safely treated with penicillin via oral challenge. Evaluation is important for appropriate antibiotic use and reducing unnecessary risks from alternative antibiotics.