Various appliances such as cellular phones, air-conditioners, home security devices, home theatres, etc. are set to realize the concept of a smart home. They have given rise to a Personal Area Network (PAN) in home environment, where all these appliances can be interconnected and monitored using a single controller. Many people and individuals with physical limitation it's very important issue to design a home automation and networking devices. One of the important technology is a wireless home network that does not include additional costs of wiring would be desirable. Bluetooth technology is an ideal solution for this purpose. This paper describes an application of Bluetooth technology in home automation and networking environment.