Allopurinol is a xanthine oxidase inhibitor used to treat gout and hyperuricemia. It works by decreasing uric acid production. Common side effects include skin rashes, though it can also cause life-threatening allergic reactions like Stevens-Johnson syndrome. Due to these risks, allopurinol should be discontinued at the first sign of rash or allergy. It is also important to monitor patients for liver and kidney toxicity.