New rules are set to be introduced to regulate drones, with those flying them having to pass safety tests.
And a new registry for owners of larger drones will be made mandatory and they will have to check that their flights are taking place in an area that is ok.
The rules could also ban the ariel devices from being flown near airports where they have caused disruption in the past - including "near misses" with planes - while police will be given new powers to ground drones and seize parts in investigations where they are believed to be involved in a crime.
"Drones have great potential and we want to do everything possible to harness the benefits of this technology as it develops," said aviation minister Baroness Sugg.
"But if we are to realise the full potential of this incredibly exciting technology, we have to take steps to stop illegal use of these devices and address safety and privacy concerns."
"These new laws strike a balance, to allow the vast majority of drone users to continue flying safely and responsibly, while also paving the way for drone technology to revolutionise businesses and public services."
The government is also working on creating "no-fly zones" by using geo-fencing technology with drone makers.
The draft drone bill will be subject to consultation with plans for secondary legislation early next year.