Heterocyclic compounds containing sulphur, nitrogen and oxygen atoms in the core structure shows number of pharmacological and biological activities. So, various heterocyclic systems were synthesized, studied in the past decade and found to possess remarkable pharmacological activities and are employed in the treatment of commonly occurring diseases. This has been back bone for the chemists to impart interest for the synthesizing some novel derivatives. In the last few decades, the chemistry of five membered heterocyclic rings has received considerable attention owing to their synthetic and biological importance. Among that one such class of compound is thiazolidinediones. The synthesis of novel thiazolidinedione derivatives and investigation of their chemical and biological behaviour have gained much more importance in recent decades. The thiazolidinediones chemistry has been developed extensively and is still developing. Presently there are a few number of drugs used clinically which comprises thiazolidinedione moiety in association with various heterocyclic rings. The present review deals with the structural features, synthesis, mechanism of action associated with thiazolidinedione derivatives and special emphasis is given on recently reported thiazolidinedione analogues possessing various biological activities.