The review article deals with theoretical aspects of Derivative UV-Spectrophotometry. The method gains significance using the first and second derivative of the transmission spectra with respect to wavelength. Generated optical derivatives are compared to the known numerical derivatives. The derivative spectra from 1st to 4th are consequently discussed. This provides valuable insight into the uses and limitations of this technique for chemical analysis. Measurement techniques and methods of obtaining derivative spectra are discussed. The degree of polynomial fit on the smoothness of derivative spectra and signal-to-noise ratio is described. Application of UV derivative spectrometry for determination of single and multicomponent analysis is shown. Derivative spectrophotometry possibly improves the selectivity and sensitivity of determination which has been illustrated.