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Pharmaceutical effluents are disrupting the environment and it is important to utilize such effluents for good purpose. Therefore, the present study is undertaken to treat effluents using calcium oxide and ferrous sulfate, wherein calcium oxide produces calcium hydroxide resulting basic pH, which is neutralized by ferrous sulfate. This treatment reduced the chemical oxygen demand (COD) and biochemical oxygen demand (BOD) to almost 98-99%. The effluent reacted with calcium hydroxide and oxidized ferrous into ferric hydroxide (precipitates). By this treatment, maximum solids were settled down in the form of sludge. The resulting neutralized wastewater may be used for agriculture and irrigation purpose. This process is very easy and effective in the improvement of water quality from pharmaceutical effluents.