Outcome-based education, a performance- based approach at the cutting edge of curriculum development, offers a powerful and appealing way of reforming and managing medical education. The emphasis is on the product-what sort of doctor will be produced-rather than on the educational process In study and unambiguously specified. These determine the curriculum content and its organization, the teaching methods and strategies, the courses offered, the assessment process, the educational environment and the curriculum time table. They also provide a framework for curriculum evaluation. A doctor is a unique combination of different kinds of abilities. A three-circle model can be used to present the learning outcomes in medical education, with the tasks to be performed by the doctor in the inner core, the approaches to the performance of the tasks in the middle area, and the growth of the individual and his or her role in the practice of medicine in the outer area. Medical schools need to prepare young doctors to practice in an increasingly complex healthcare scene with changing patient and public expectations, and increasing demands from employing authorities. Outcome-based education offers many advantages as a way of achieving this. It emphasizes relevance in the curriculum and accountability, and can provide a clear and unambiguous framework for curriculum planning which has an intuitive appeal. It encourages the teacher and the student to share responsibility for learning and it can guide student assessment and course evaluation. What sort of outcomes should be covered in a curriculum, how should they be assessed and how should outcome-based education be implemented are issues that need to be addressed. In the era of globalization, traditional education system is losing its relevance. In today’s world, everything changes very rapidly and continuously. More skills are required to work with very fast developing technology. The educational institutions should produce graduates to cope with technological development. Thus to overcome the requirement, it is mandatory to shift from traditional education system to Outcome Based Education (OBE), which includes Program Outcomes (PO), Program Specific Outcomes (PSO), and Course Outcomes.