About 450 insect species are found to be sensitive to neem (Azadirachta indica A. Juss) compounds especially the most potent triterpinoid, azadirachtin. The insect killing properties of neem are through behavioural and physiological means it spared the higher animals in sprayed ecosystems. But safety of the neem has become debatable issue since both the pest species and the natural enemies belong to the same class, Insecta. So, studies on the side effects of neem based insecticides revealed that egg parasitoids are neem-sensitive with a dose-dependent response. The parasitisation was also influenced at higher concentration. However, the immature stages of the parasitoid developing inside the host eggs are totally safe and had normal adult emergence. The parasitisation by larval parasitoids was not much influenced by the neem; however, the external larval parasitoids are more sensitive than internal ones. Pupal parasitoids are completely safe from the side effects of neem. Though the immature stages of predators are slightly sensitive to the neem the adults on the other hand are not much affected. In general, the field doses of neem based insecticides do not reduce the beneficial capacity of the parasitoids. It is suggested that for the use of parasitoids along with neem based insecticides, presampling and timing of application are necessary in order to avoid the ill effects of neem products, if any, on them. Hence, combined use of natural enemies with neem insecticides based on ecological and behavioural aspects of crop pests is suggested for “integrated biological control”.