Background: The dosimetric parameters required in lung cancer radiation therapy are taken from a homogeneous water phantom; however, during treatment, the expected results are being affected because of its inhomogeneity. Therefore, it becomes necessary to quantify these deviations. Objective: The present study has been undertaken to find out inter-and intralung density variations and its dosimetric impact on lung cancer radiotherapy using Monte Carlo code FLUKA and PBC algorithms. Material and Methods: Density of 100 lungs was recorded from their CT images along with age. Then, after PDD calculated by FLUKA MC Code and PBC algorithm for virtual phantom having density 0. 2 gm/cm3 and 0. 4 gm/cm3 (density range obtained from CT images of 100 lungs) using Co-60 10 x10 cm2 beams were compared. Results: Average left and right lung densities were 0. 275± 0. 387 and 0. 270± 0. 383 respectively. The deviation in PBC calculated PDD were (+)216%, (+91%), (+)45%, (+)26. 88%, (+)14%, (-)1%, (+)2%, (-)0. 4%, (-)1%, (+)1%, (+)4%, (+)4. 5% for 0. 4 gm/cm3 and (+)311%, (+)177%, (+)118%, (+)90. 95%, (+)72. 23%, (+)55. 83%, (+)38. 85%, (+)28. 80%, (+)21. 79%, (+)15. 95%, (+)1. 67%, (-) 2. 13%, (+)1. 27%, (+)0. 35%, (-)1. 79%, (-)2. 75% for 0. 2 gm/cm3 density mediums at depths of 1mm, 2mm, 3mm, 4mm, 5mm, 6 mm, 7 mm, 8mm, 9mm, 10mm, 15mm, 30mm, 40mm, 50mm, 80mm and 100 mm, respectively. Conclusion: Large variations in inter-and intra-lung density were recorded. PBC overestimated the dose at air/lung interface as well as inside lung. The results of Monte Carlo simulation can be used to assess the performance of other treatment planning systems used in lung cancer radiotherapy.