OBJECTIVES: The aim of this research was to analyze outhospital drug consumption in Montenegro in 2007, and to compare data with drug consumption in previous period. The aim was also to compare drug consumption in Montenegro with drug consumption in countries with developed prarmacotherapeutic practice. METHODS: Drug consumption was analyzed by number of DDD per 1000 inhabitants per day. Consumption of financial resources was analyzed as well. RESULTS: Total outhospital drug consumption funded by Republic Health Fund of Montenegro in 2007. was 278.59 DDD/1000 inhabit./day. The highest consumption was in group C (drugs for cardiovascular diseases) with  149,29 DDD/1000 inhabit./day (53,59% of total drug consumption). Second highest consumption was in group A (drugs for alimentary tract and metabolism) with 34,67 DDD/1000 inhabit./day (12.45% of total drug consumption). Drugs for nervous system participated with 10,50% in total drug consumption with 29.25 DDD/1000 inhabit./day. Total drug consumption funded by Republic Health Fund of Montenegro in 2007. was increased for 36.68% compared to drug consumption in 2005.  (203,82 DDD/1000 inhabit./day). Increase in drug consumption resulted in increased consumption of financial resources (12.859.961,58 €) which were higher for 2.857.855,73 € then in 2005. Highest increase in consumption of financial resources was in group C (€1,096.468.28 in 2007.), group A (€559,827.80  in 2007.), group R (€468,156.55 in 2007.) and group N (€452,212.30 in 2007.). CONCLUSIONS: Although there was a significant decrease in drug consumption in Montenegro in 2007. compared to 2005. drug consumption in 2007. was much lower then in Scandinavian countries. Detailed analysis in separate ATC groups of drugs reveal that consumption is not always rational from pharmacoterapeutic and pharmacoeconomic point of view.