During the development of society and the economy, the rapid growth of health care costs has become a burden on the worldwide health protection system. The problem of aging populations and a changing disease spectrum as well as the progress and change in health care technology, therefore, the health care costs increased. The major problem of many countries is how to use drug utilization review (DUR) and pharmacoeconomic evaluation to improve and optimize the configuration of medical and health resources. This paper presents the importance of drug utilization review and pharmacoeconomic evaluation and discusses the application of them in new drug research and development, drug pricing, the selection of NRDL, and promoting rational drug use. The quality of drug utilization review and pharmacoeconomic evaluation is critical. Furthermore, this paper analyzes problems and challenges of drug utilization review and pharmacoeconomic evaluation. Government departments, medical institutions, pharmaceutical companies, and research institutes should use them to solve their problems. Key words:  Drug utilization review, Pharmaoeconomic evaluation, Pharmacoeconomics