Jquery array.push() not working

Your code alerts the current value of the dropdown for me, showing that it has properly pushed into the array.

Are you wanting to keep old values and append? You're recreating the array each time, meaning that the old value gets clobbered.

Here's some updated code:

var myarray = [];
$("#test").click(function() {
    myarray.push($("#drop").val());
    alert(myarray);
});

jsFiddle

Your HTML should include quotes for attributes : http://jsfiddle.net/dKWnb/4/

Not required when using a HTML5 doctype - thanks @bazmegakapa

You create the array each time and add a value to it ... its working as expected ?

Moving the array outside of the live() function works fine :

var myarray = []; // more efficient than new Array()
$("#test").live("click",function() {
        myarray.push($("#drop").val());
        alert(myarray);
});

http://jsfiddle.net/dKWnb/5/

Also note that in later versions of jQuery v1.7 -> the live() method is deprecated and replaced by the on() method.