Concept of re-use is not a rare phenomenon in core engineering branches. But the same concept in software engineering context has been introduced in early days of computing but its approach was ad hoc. But the introduction of object oriented programming with some advancement explores mew areas of software engineering. Today complex, high quality software systems are built efficiently using component based approach in a short period of time. But a number of questions arise about the feasibility of the component approach. But the concept of CBD successfully answers the arising questions. The importance of Component Based development lies in its efficiency. It takes only a few minutes to assemble the stereo system because the components are designed to be integrated with ease. Although software is considerably more complex, it follows that component-based systems are easier to assemble and therefore less costly to build than systems constructed from discrete parts. In addition, CBSE encourages the use of predictable architectural patterns and standard software infrastructure, thereby leading to a higher-quality result.