Neuropharmacology explores how drugs influence the nervous system and their potential in treating neurological and psychiatric disorders. This review provides a comprehensive overview of the mechanisms through which various drugs impact neural processes and their therapeutic applications. It covers major drug classes, including antipsychotics, antidepressants, anxiolytics and neuroprotective agents, highlighting their modes of action, efficacy and limitations. Advances in drug development, such as targeted therapies and novel compounds, are discussed about their potential to improve the treatment outcomes for disorders such as schizophrenia, depression, anxiety and neurodegenerative diseases. Understanding these mechanisms is crucial for developing more effective and safer treatments.