The global outbreak of Coronavirus disease 2019 (COVID-19), caused by the Severe Acute Respiratory Syndrome CoronaVirus 2 (SARS-CoV-2/2019-nCoV) has put forth a serious threat to the international public health and has ruined the global economy. Till date, no drugs have been approved for Coronavirus Disease-2019 (COVID-19), although use of some drugs in trial phase has been attempted. The drugs being used for management of COVID-19 disease include chloroquine (CQ), hydroxychloroquine (HCQ), and remdesivir. In this article, we have aimed to review existing literature and mechanism by which CQ and HCQ have an effect on COVID-19, most importantly by interfering with autophagy, lysosomal activity, receptor binding and membrane fusion. We have systematically searched the PubMed database upto April, 2020 and analysed all the articles published on CQ, HCQ and COVID-19. The available data provides insights into the immunomodulatory potency of HCQ, along with the molecular mechanism of action of the drug on the SARS-CoV-2.