Milk is consumed everywhere throughout the world and it is having nutritional as well as economic importance. Although, milk and milk products are healthy and nutritious, may contain potentially harmful drug residues. Residues enter the milk through contaminated feed and water, improper use of veterinary drugs, negligent milk withdrawal or incorrect collection and processing of milk. Contamination of milk by certain drug residues not only deteriorates the quality but also make the milk unfit for the consumption. The overall public health impact of drug residues in milk and milk products can be minimized by the contribution of farmers, producers, clinicians, researchers, consumers, legislative and other food safety authorities. This review deals with the drug residues in milk and milk products with particular emphasis on sources, impact and their prevention and control.