Inadequate sleep has been recognized as a risk factor for health status and quality of life. Fatigue due to improper sleep is a major cause for the poor quality of life. Evidence show the quality of sleep affects all the parameters of quality of life assessment such as physical health, social health, functional health and psychological health. In general, assessing the global impact of sleep on health-related quality of life (HRQL) is necessary because this factor is always left behind in medical assessment and medical history of an individual. In general, this article is a review on sleep quality and its effect on health status, medical condition of people, psychiatric disorders and occupational status of individuals. The data is collected based on the internet search and papers submitted in PubMed and google scholar. Sleep status is vital to physical and mental health. Measuring the quality of sleep and its effect on individual’s life is very much important in assessing the health status of people. According to our study in this article, we suggest the importance of sleep to be measured and evaluated by the health care system for the individuals whether in hospitals or institutes or any organization.