OBJECTIVES: The elderly population is increased in India when compared to other countries. Larger variation in physiology and pharmacology in elderly population along with presence of co morbidities require multiple medications. The present study was designed to evaluate drug utilization pattern in terms of defined daily dose along with pharmacoeconomic analysis in geriatric patients admitted in a tertiary care teaching hospital. METHODS: A prospective observational study was conducted for a period of one year during 2014-2015. Data were analyzed for age and gender distribution, common indications for admission and systems involved hospital stay duration, and total number of drugs prescribed per patient. Cost of the drugs was calculated to assess the economic burden. RESULTS: Total 300 geriatric patients were admitted in medicine ward in that 190 (63.5%) patients were male and 110 (36.5%) patients were female. Average hospital stay was 5.09 days with the five most common conditions for admissions were CVS (24%), endocrine (15.33%), respiratory (12%), CNS (7.3%), renal failure (4.66%) disease. The average cost burden on hospital ₹140.01 rupees. The comparison of total treatment of cost of diseases like stroke is ₹262.3, hypertension + diabetes mellitus ₹192.1, Diabetes mellitus ₹158.5. CONCLUSIONS: In our study most commonly prescribed drugs for geriatric patients were Pantoprazole, Diclofenac, Amlodipine and Metformin. Cardiovascular diseases and Diabetes mellitus are most commonly diseases for admission into inpatient department. The use of a high number of drugs, and per oral drugs, parenteral drugs and intravenous fluids, is a common problem in geriatric patients. According to cost of the treatment analysis CVS and Diabetic diseases covers huge expensive when compared to other diseases.