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Abstract: Internet has become the requirement for the hour. With new technologies being developed day by day the requirement for net has conjointly up, with the event of the web speed of transmission conjointly needs to extend. Li-Fi may be thought lightweight of sunshine} based mostly Wi-Fi because it uses light rather than radio waves to transmit data. And rather than Wi-Fi modems, Li-Fi might use transceiver fitted diode lamps which will light-weight a space further as transmit and receive data. Since straightforward light-weight bulbs are used, there may be multiple access points. This paper focuses on the operating of Li-Fi. The transmitter (LED) and receiver section (Photo diode) alongside ATMEGA16 we've designed and analyzed the performance. With average information rates up to 75-80kbps was achieved in indoor lamination at a distance of zero.6-0.8m.