Polydnavirus is a mutualistic DNA virus found in some braconid and ichneumonid wasps. Its genome is integrated into host chromosome as a provirus. Its replication occurs at ovarian calyx epithelium during host pupal stage to form episomal viral particles. The viral particles are delivered into hemocoel of the parasitized insect along with eggs during wasp oviposition. Several polydnaviral genomes, which are isolated from the episomal virus particles, have been sequenced and exhibit some gene families with speculative physiological functions. This review presents the viral characteristics in terms of Its parasitic physiology. For developing new insect pest control tactics, it also discusses several application strategies exploiting the viral genome to manipulate insect physiology.