Cigarette smoking has been examined as an economic activity, which is not only harmful to the smoker but also endangers the health and safety of his dear ones at home and his colleagues at the work place. A brief historical back ground of use of tobacco and its products has been reviewed. Findings of medical and scientific research regarding the serious health risks associated with both active and passive smoking has been examined. In final analysis some ethical issues associated with the U.S. policy to curb cigarette smoking at home but to promote cigarette consumption abroad has been examined.