Skin Pigmentation is a phenomenon in which the accumulation of melanin occurs due to various factors and leads to skin tanning and other skin disorders. Now a day’s human beings are more conscious about quality of life and appearance. With this fascination towards various skin whitening or glowing agents is gaining more adherences. While synthetic chemicals approved as skin whitening agents have got the due recognition in market, the possible adverse effects on sensitive skin creates a question regarding their use. The natural plant extracts available as tyrosinase inhibitors are mostly phenolic entities. In this review the inhibitory effect of phenolic compound and flavonoids on tyrosinase enzyme using molecular simulations is studied. The insilico study of flavonoids helps to predict the mechanism of inhibition as well as identification of potential natural tyrosinase inhibitors. This review is oriented to understand the tyrosinase inhibitory activity of an array of phenolic compounds with emphasis on flavonoids to explain how position of the substituents and their interaction with the enzyme can be correlated for the efficacy against the tyrosinase activity.