The vending machines are used to dispenses small different products (snacks, ice creams, cold drinks etc.), when a coin is inserted. These machines can be implemented in different ways by using microcontroller and FPGA board. Here in this paper, the authors proposed an efficient algorithm for implementation of vending machine on FPGA board. Because FPGA based vending machine give fast response and uses less power than the microcontroller based vending machine. In this paper FPGA based vending machine supports four products and two coins. The vending machine accepts coins as inputs in any sequence and delivers products when required amount is deposited and gives back the change if entered amount is greater than the price of product.