Pharmacoeconomics plays a crucial role in healthcare decision-making by assessing the economic efficiency of pharmaceutical interventions. This review examines key methodologies in pharmacoeconomics, including Cost-Minimization Analysis (CMA), Cost Effectiveness Analysis (CEA), and Cost-Benefit Analysis (CBA), highlighting their applications in healthcare policy and pharmaceutical industry. The paper explores challenges such as data availability and ethical considerations, and discusses emerging trends like technological advancements and global health integration. By synthesizing current literature from 2012 to 2021, this review underscores the evolving landscape of pharmacoeconomics and its implications for optimizing healthcare resource allocation and improving patient outcomes