The technology of carrying out laboratory operations using scaled down Lab-On-a-Chip (LOC) device is really appealing. The whole laboratory being reduced into a small chip. The time taken to analyze a reaction can be reduced through volume reduction of the reagents used; the distinctive behavior of liquids at the nano scale allows increased control of molecular interactions and concentrations. The cost of reagents and the chemical waste amounts can also be very much reduced through the use of this technology. The LOCs also provide for the analysis of samples at the point of need instead of a centralized laboratory. The main aim of this research is to review about a newly device known as the Lab-on-chip device. This research was carried out to study and well understand all the aspects of this device, including its history, advantages, disadvantages, where it is applied and the challenges. It is evident that with the development of Lab on Chip devices, everything becomes better and easier. Even though the technology is at its initial stages of development, it proves to be very efficient. This clearly shows how much more will be achieved with continual development in this field.