Introduction: The prevalence of chronic obstructive pulmonary disease (COPD) continues to increase and is currently the 4th leading cause of death in the U.S. Although a proven and effective treatment for the chronic airway inflammation of asthma, the role of corticosteroids to treat underlying inflammation in COPD is controversial. The purpose of this study is to investigate the effect that inhaled corticosteroids, fluticasone propionate and budesonide, have on lung function and acute exacerbations in patients with COPD. Methodology: An evidence based literature review was conducted utilizing Medline, Cochrane Library, and ProQuest databases. Results: Nine randomized, controlled trials were found which specifically addressed the objective of this paper. Review of these studies indicates that inhaled fluticasone propionate has a significant effect on decreasing exacerbations, but not on the improvement of lung function. It was also discovered that budesonide had no significant effect on reduction of exacerbations or improvement of lung function. Conclusions: The results from this literature review are inconclusive due to conflicting and insufficient data. Therefore, a recommendation for the use of fluticasone propionate or budesonide to improve lung function and decrease exacerbations of COPD cannot be made at this time.