Background: Drug wastage is a major concern in healthcare and more so in an orthopedic setup where musculoskeletal ailments form a major proportion. The principal objective of this study was to ascertain the extent of drug wastage and its financial costs in orthopedics. Materials and Methods: This was a prospective pilot study and was conducted to ascertain the quantity of drug wastage in the orthopedic unit of a tertiary care hospital. The study was conducted in the outpatient facilities where the list of drugs prescribed and the wastage was recorded by telephoning the patients after a week of consultancy. The cost evaluation for the actual use and wastage was undertaken and audit was done to understand which drug generated the maximum wastage. Results: The highest drug wastage was observed in paracetamol (80%), diclofenac (38.36%) glucosamine + diacerein (53.33%), methylcobalamin + folic acid + alpha-lipoic acid (53.33%), methylcobalamin + folic acid (28.57%), and rabeprazole + domperidone (12.5%). Highest cost for wastage of drug was observed for diclofenac (INR434.1) and accounted for 44.72% of the drug cost. Conclusion: As far as the authors are aware, this is the first study addressing the financial impact of drug wastage in orthopedics. Attempts should be directed at minimizing wastage and at cost saving.