Olanzapine is an atypical antipsychotic approved to treat schizophrenia and bipolar disorder. It works by blocking dopamine, serotonin, histamine, and muscarinic receptors. Common side effects include weight gain, hyperglycemia, and increased mortality in elderly patients with dementia. It is generally dosed between 5-20 mg daily, with monitoring of blood glucose and lipids recommended due to metabolic side effect risks.