Drilling fluids (muds) play a vital role in the drilling of oil and gas wells. These muds are typically complex chemical mixtures formulated to perform a variety of functions under a wide range of down hole temperatures and pressures, but yet are nondamaging to the environment and safe for personnel to handle. These fluids are circulated down the hollow drill string and up the annulus, formed by the drill string and the hole to remove formation material dislodged by the bit. The fluids must have sufficient density to offset formation pressures to prevent a blowout and to maintain a stable well bore, but be formulated to prevent excessive loss of fluid to permeable formations. Other important functions include lubrication of the drill bit and drill string, collection of information about subsurface formations, and noncorrosivity to surface and down hole equipment. Drilling fluids are composed of liquids (water, petroleum oils, and other organic liquids, eg, synthetic brine fluids), dissolved inorganic and organic additives, and suspended, finely divided solids of various types. This article describes drilling fluid classification, properties, materials used as drilling fluid additives, testing, economics, and an update on current environmental restrictions on drilling fluids/muds in the North Sea and in the Gulf of Mexico. A detailed section has been devoted to clear brine drilling fluids (CBFs) that are used in completion and workover operations. Also presented is a selection of new and recent drilling fluid formulations from the patent literature.