This document discusses rational drug therapy and the essential drug concept. It defines essential medicines as drugs that provide the best balance of quality, safety, efficacy and cost for treating most of the population. The objectives of rational drug therapy are to maximize effectiveness and safety, identify patients needing counseling, minimize medication errors, and provide balance among factors for rational drug use and healthcare costs. The principles of essential drug concept are maximum treatment with minimum drugs, adequate drug utilization, and economic and efficient activities with proper patient information. The pharmacist plays an important role in counseling, reporting adverse drug reactions, drug procurement, inventory control, and promoting rational drug usage.