Occam’s Razor is a philosophy used widely in medicine. Often, it is referred to as the law of parsimony. However, there are different interpretations to how Occam’s razor is applied in the clinical diagnostic process. There have also been discussions around the application of Occam’s razor in medicine and concerns were raised on the accuracy of the diagnosis. This paper discusses the different interpretations used, their advantages and risks, and when we should apply the principle of Occam’s razor.