A medicine dispensing system is provided that comprises of a medicine container with an inbuilt pill dispensing assembly which automatically dispenses a prescribed dose of medicine at prescribed times. It alerts the patient when a dose of medicine has been dispensed. The alert signal is a local audio or visual alarm or a remote reminder by phone, wireless network or internet. A modem and communication ports are provided which enable the said medicine container to communicate with remote parties like health care professionals and medical devices such as glucose meter. This feature allows remote medicine management, disease management and health education. An internal microprocessor and a memory chip control and execute electronic functions of the said medicine container. Sensors are provided to detect whether a dose has been dispensed and whether it is consumed. The said medicine container is able to record, analyze and report patient's compliance with a medicine regimen.