Medicine Lake is a city in Hennepin County, Minnesota, United States. The population was 371 at the 2010 census. The city is located on a peninsula that juts into a lake of the same name.

According to the United States Census Bureau, the city has a total area of 0.33 square miles (0.85 km²), of which 0.18 square miles (0.47 km²) is land and 0.15 square miles (0.39 km²) is water. The city is completely surrounded by the city of Plymouth, and forms a peninsula stretching into the lake that it is named after.

Minnesota State Highway 55 is 0.5 mile from the community.

As of the census of 2010, there were 371 people, 160 households, and 104 families residing in the city. The population density was 2,061.1 inhabitants per square mile (795.8/km²). There were 174 housing units at an average density of 966.7 per square mile (373.2/km²). The racial makeup of the city was 89.8% White, 4.3% African American, 1.3% Native American, 2.2% Asian, and 2.4% from two or more races. Hispanic or Latino of any race were 1.3% of the population.

There were 160 households of which 23.8% had children under the age of 18 living with them, 51.9% were married couples living together, 7.5% had a female householder with no husband present, 5.6% had a male householder with no wife present, and 35.0% were non-families. 28.1% of all households were made up of individuals and 8.2% had someone living alone who was 65 years of age or older. The average household size was 2.32 and the average family size was 2.88.

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