OBJECTIVES: To compare the perception and knowledge of final year pharmacy and medical students regarding generic medicines in southeast Yemen and to explore the factors could affect the prescribing and dispensing of generics.  METHODS: A cross-sectional study conducted among the students from both governmental and private universities.  Pre-validated modified questionnaire which consist of four parts was used to collect the data RESULTS: All final year pharmacy and medical students were invited to participate in the study. Total of 322 final medical students and 206 final year pharmacy students responded to the questionnaire giving response rate 88.5 % and 82 % respectively. The average age is 24.96 years for pharmacy students and 24.77 years for medical students. Both students groups selected incorrect choices regarding the allowable limits of bioequivalence limits when comparing the innovators with the counterpart generics, where pharmacy students showed better scores (11.7%) than medical students (2.5%). Majority of both student groups did understand how bioequivalent tests conducted for generic medicines, however both medical (50%) and pharmacy (75%) students agreed that generic medicines are therapeutically equivalent with brand name medicines. Most of the student groups agreed that generic medicine must be in the same dosage forms (e.g., tablet, capsule) and the same given dose as the brand name medicines. CONCLUSIONS: In spite there were differences in the perception of generic medicines among respondent students, both groups had lack of knowledge pertaining the bioequivalence, safety and quality of generic medicines, which should corrected by educational intervention in order to improve the utilization of generic medicines in Yemen