Fluid Catalytic Cracking (FCC) is the most widely used secondary conversion process in the refining industry, for producing gasoline, olefins, and middle distillate from heavier petroleum fractions. There are more than 500 units in the world with a total processing capacity of about 17 to 20 % of the crude capacity. FCC catalyst is the highest consumed catalyst in the process industry. On one hand, FCC is quite flexible with respect to it's ability to process wide variety of crudes with a flexible product yield pattern, and on the other hand, the interdependence of the major operating parameters makes the process extremely complex. An operating unit is self balancing and some fluctuations in the independent parameters are automatically adjusted by changing the temperatures and flow rates at different sections. However, a good simulation model is very useful to the refiner to get the best out of the process, in terms of selection of the best catalyst, to cope up with the day to day changing of the feed quality and the demands of different products from FCC unit. In addition, a good model is of great help in designing the process units and peripherals. A simple empirical model is often adequate to monitor the day to day operations, but they are not of any use in handling the other problems such as, catalyst selection or, design / modification of the plant. For this, a kinetic based rigorous model is required. Considering the complexity of the process, large number of chemical species undergoing "n" number of parallel and consecutive reactions, it is virtually impossible to develop a simulation model based on the kinetic parameters. The most common approach is to settle for a semi empirical model. We shall take up the key issues for developing a FCC model and the contribution of such models in the optimum operation of the plant.