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Pico hydro is a green energy that consumes a small streams to generate electricity without depends on any sources of non-renewable energy. This green scheme offer a cheap, efficient, reliable and cost effective of alternative energy and hence, there is no need to worries about the fuel source, capital cost, pollution and life expectancy. Even though the power generated is less than 5kW, but the benefit gain from this energy is the ability to raise the standard living of residents in remote areas. This type of green technology is still classified as a new in Malaysia and due to that, it is recommended to see the status of implementation. Besides that, this paper discuss about the basic theory and concept of pico hydropower in order to have a better appreciation on this type of generation system.