Background: Generic drugs are relatively cheap and equally effective as branded drugs. Government of Andhra Pradesh is promoting the use of generic drugs in all the districts and planning to open generic outlets in each district. We conducted the study to assess the status of use of generic drugs in a rural cum tribal district of Andhra Pradesh India. Materials and Methods: Case records of 200 patients analyzed retrospectively for use of generic and branded drugs. Equal cases were selected randomly from medicine, surgery, and gynecology and paediatrics departments. Result: A total of 952 drugs were used. 37.86% were prescribed by generic name. In general medicine, general surgery, obstetric and genecology and paediatrics 39.39%, 25.5%, 46.65% and 39.91% over all generic drugs and 52.70%, 28.86, 37.71% and 25.5% generic antimicrobials were used respectively. Ranitidine, Metoclopramide, Pheniramine, Frusemide, Dicyclomine, Nifidepine, Cefixime and Ceftriaxone were 100% prescribed by all the departments with brand names. All the departments prescribed Ampicillin as generic drug only. Conclusion: Quality controlled generic drugs are equally effective as branded drugs. We suggest that generic drugs are substitution for branded drugs which reduces over all treatment cost.