Pharmaceutically active compounds (PhACs) have pernicious effects on all kinds of life forms because of their toxicological effects and are found profoundly in various wastewater treatment plant influents, hospital effluents, and surface waters. The concentrations of different pharmaceuticals were found in alarmingly high concentrations in various parts of the globe, and it was also observed that the concentration of PhACs present in the water could be eventually related to the socio-economic conditions and climate of the region. Drinking water equivalent limit for each PhAC has been calculated and compared with the occurrence data from various continents. Since these compounds are recalcitrant towards conventional treatment methods, while advanced oxidation processes (AOPs) have shown better efficiency in degrading these PhACs. The performance of the AOPs have been evaluated based on percentage removal, time, and electrical energy consumed to degrade different classes of PhACs. Ozone based AOPs were found to be favorable because of their low treatment time, low cost, and high efficiency. However, complete degradation cannot be achieved by these processes, and various transformation products are formed, which may be more toxic than the parent compounds. The various transformation products formed from various PhACs during treatment have been highlighted. Significant stress has been given on the role of various process parameters, water matrix, oxidizing radicals, and the mechanism of degradation. Presence of organic compounds, nitrate, and phosphate usually hinders the degradation process, while chlorine and sulfate showed a positive effect. The role of individual oxidizing radicals, interfering ions, and pH demonstrated dissimilar effects on different groups of PhACs.