Objective:To review methodology of medicine price index methodology and provide methodological implications for empirical researches. Methods:Based on the recent original home and abroad researches, the price index formulas, the medicine product definition, price and quantity units were introduced in this paper together with their merit/demerit and different selections’ measurement bias. Results: The measurement results were significantly different along with selections of the different weighted price index formulas. The medicine product definition and the price/quantity units in the formulas were different as well. By taking into account the new products entry and the ol-der ones exit updating issue, and by considering the products quality changes issue can also have an important empir-ical implication for the price measurement. Conclusions:The medicine price index methods need to be deeply devel-oped and the researchers should devote to further research and perform accurate measurement. In the empirical analy-sis, researchers can use different methods to measure the medicine price index in order to more accurately reflect the medicine price level change.