A Victorian school has axed an assignment which asked students to create "attractive" packaging for an illegal drug.

Rosehill Secondary College principal Peter Rouse said the project was scrapped after a parent raised concerns. 

"I can see how out of context it doesn't look all that good," Mr Rouse said. 

The assignment handed to students at Rosehill Secondary College

Year 10 students at the school in Melbourne's north-west were asked to design and create packaging for an "illegal drug of their choice".

They were asked to research the cost of the drug, the unwanted side effects, and its "good and bad effects".

Mr Rouse said the project had been running for five years without controversy.

"The objective was to let them know that things don't come in nice packaging. It was to enforce to students that illegal drugs aren't presented in nice packaging."

A concerned parent of a year 10 student phoned 3AW on Tuesday morning and said the project "glorified drugs".

"Of course it is promoting drugs - [it asks students] to come up with packaging that is attractive to a user," he said. 

"By the end of it he was asking, me 'If I sold it for this much'... he started doing the maths on it and told me how much money he could make."

He said the project triggered inappropriate comments at home. His younger daughter asked him "so what are magic mushrooms?"

"Thats when I said this project has to stop," he said.