A simple, sensitive and reproducible stability indicating UV Spectrophotometric method has been developed for quantitative determination of Nevirapine in bulk and pharmaceutical formulations. The UV- spectrum was scanned between 200 to 400 nm and 283 nm was selected as maximum wavelength for absorption. Beer's law was obeyed in the concentration range of 10 to 24 μg/ml. Good accuracy (100.4-101.65%), precision RSD was found to be 0.0431 and the method was successfully applied to the pharmaceutical dosage form containing the above-mentioned drug without any interference by the excipients. The method was fast and economical and it was also selective and sensitive for the desirable range. Results of the analysis were validated as per ICH guidelines and by recovery studies. Stability testing study includes the effect of temperature, oxidation, photolysis and susceptibility to hydrolysis across a wide range of pH values. The drug was subjected to oxidation, hydrolysis, heat and photolysis to apply stress conditions. © RJPT All right reserved. © 2012 Elsevier B.V., All rights reserved.