Cutaneous leishmaniasis is a protozoan disease caused by various species of an obligate intracellular parasite Leishmania. It is endemic in more than 80 countries on five continents: Africa, Asia, Europe, North America and South America, with a total of 350 million people at risk. In view of the large number of clinical presentations of cutaneous leishmaniasis (CL), a correct diagnosis of the disease becomes important. Clinical aapearance along with history of visit to an endemic area may be sufficient at times. These days the diagnosis is generally aided by slit skin smear and impression smears examination, histopathology of the tissue sections and by culture of parasite. However, unusual clinical presentation, superadded infection or persistence of the disease for a prolonged time, has provoked scientists to develop more sensitive methods to detect even a trace of the parasite. The present article is to review the various diagnostic techniques and their relevance in different clinical settings.