Computational methods play a central role in modern drug discovery process. It includes the design andmanagement of small molecule libraries, initial hit identification through virtual screening, optimization ofthe affinity as well as selectivity of hits and improving the physicochemical properties of the leadcompounds. In this review article, computational drug designing approaches have been elucidated anddiscussed. The key considerations and guidelines for virtual chemical library design and whole drugdiscovery process. Traditional approach for discovery of a new drug is a costly and time consuming affairbesides not being so productive. A number of potential reasons witness choosing the In-silico method ofdrug design to be a more wise and productive approach. There is a general perception that applied sciencehas not kept pace with the advances of basic science. Therefore, there is a need for the use of alternativetools to get answers on efficacy and safety faster, with more certainty and at lower cost. In-silico drugdesign can play a significant role in all stages of drug development from the initial lead designing to finalstage clinical development.