Introduction: Precision medicine, which means selecting therapeutic interventions considering the genetic characteristics, environment, and lifestyle of patients, is one of the new paradigms of medical science. Pharmacogenetics is a cornerstone of precision medicine by which the most effective and least toxic treatment could be adopted by assessing germline variation. The other important approach in the field of precision medicine is targeted therapies that mainly apply in oncology. In targeted therapies response to different treatments is evaluated by assessing the existence of the biomarkers, and based on that the appropriate treatment would be selected. In recent decades, the precision medicine approach has been focused and placed beyond laboratory knowledge, in the list of health services and policies, and utilizing this approach has increased due to the advances in technologies resulting in better analyzing and achieving more reliable genetic data. Applying pharmacogenetic tests in prescribing therapeutic regimen would be helpful in increasing the effectiveness of treatment as well as preventing the occurrence of medication adverse effects. Currently, there are recommendations for the necessity of conducting genetic tests about some of the approved medicines according to the pharmacogenetic guidelines. Some of these drugs are listed in Iran Drug List (official medicines list in Iran). However, using the pharmacogenetic tests is limited in Iran and administration of targeted therapies with assessing biomarkers is more noticed. Considering the waste of resources in healthcare systems caused by lower efficacy of treatment and/or medication side effects, applying pharmacogenetic tests can lead to optimal management of the resources. Therefore, conducting more studies on the issue of evaluating the cost-effectiveness of using pharmacogenetic tests in Iran causes better decision-making about the routine application of precision medicine approach in practice especially in determining the adverse effects.