This review summarizes application of stability indicating method and stress test in pharmaceutical industry. In process of new drug development, stability indicating method and stress test are very important for evaluating stability and shelf life. Stability indicating method is a validated analytical method for accuracy and precision measurement drug substance and drug products that free from process impurities, excipient, and degradation products. That could be utilized to monitor degradation results during stress test. Stress test is designed to determine degradation conditions for hydrolysis, oxidation, and photolysis. The results provide information for supporting identification of possible degradants, degradation pathways and intrinsic stability of drug molecule.