Premenstrual syndrome (PMS) is a condition which appear at the late luteal phase of menstrual cycles with physical changes include breast swelling, fatigue, headache, weight gain and psychological changes include depressive mood, irritability, and tension. These changes remit after the onset of menstruation. This syndrome can occur 80% of women population but it is severe form can only be seen 5% of women and called premenstrual dysphoric disorder or late luteal phase syndrome. In this review, current literature about diagnosis, etiology and treatment of premenstrual syndrome and premenstrual dysphoric disorder is examined. We searched Pubmed Medline (1950-2011)using the terms “premenstrual syndrome,” “premenstrual dysphoric syndrome,”. The exact cause of PMS has not been identified, but several theories were proposed to explain this disorder. Biological etiology of the disorder explained by the sensitivity of some women’s to normal biological fluctuations of gonadal hormones. Psychosocial factors also influence the severity of symptoms. These biological and psychological vulnerability presented as somatic and psychological symptoms of the premenstrual dysphoric disorder. Current evidences suggested that this disorders stem from the interaction between hormones and the central nervous system and pharmacological agents and psychosocial interventions can alleviate the symptoms of this disorder. For many women with mild symptoms, lifestyle approaches are enough to control symptoms. In severe cases, hormonal treatments and antidepressants may be helpful. Combined oral contraceptive drugs and selective serotonin-reuptake inhibitors are used to treat premenstrual symptoms. Cognitive behavioral therapy may be an alternative psychosocial treatment to drug treatments.