This research has an aim to provide efficient automation and security system for home at a low cost and by using arduino. Home automation means controlling home appliance activities and features automatically and in controlled technique. It initially involves the control and automation of systems that ensure human comfort such as lighting, fire extinguisher, air conditioning and security. This smart technology helps to get desired security and comfort in daily life. Commercial home automation systems are still not affordable for middle class families in our country. Thankfully, with the availability of cheap microcontrollers, like the Arduino, it has enabled the easy implementation of low cost home automation systems including all most all the features those are added to those high end and commercial devices for home automation and security. In this paper, we present a simple, low cost and multi-functional home automation system based on Arduino microcontroller. This whole system works with so many beneficial sensors which detect problems and takes step to fix them. This project includes Bluetooth module and arduino Bluetooth controller application with which the functions are executed.