In this paper, we investigate the deterministic and stochastic prey-predator system with refuge. The basic local stability results for the deterministic model have been performed. It is found that all the equilibrium points except the positive coexisting equilibrium point of the deterministic model are independent of the prey refuge. The trivial equilibrium point, predator free equilibrium point and prey free equilibrium point are always unstable (saddle point). The existence and local stability of the coexisting equilibrium point is related to the prey refuge. The permanence and extinction conditions of the proposed biological model have been studied rigourously. It is observed that the stochastic effect may be seen in the form of decaying of the species. The numerical simulations for different values of the refuge values have also been included for understanding the behavior of the model graphically.