System designed here is for automation of home appliances using Dual Tone Multi Frequency (DTMF) technology. This also aims at providing an interfered and continuous control over many household devices. The user module has many buttons, each referring to the device that needs activation. An encoder (i.e. the transmitter phone) encodes the required information and transmits with the help of a FM transmitter. The FM receiver (i.e. receiver phone) receives the modulated signal and demodulates it using a demodulator and the required information is determined by the DTMF decoder. Following this method the required action is achieved. Such a system is very useful in this busy modern world, where everything is being sought for automation. Also included here, is a microcontroller based counter to count the number of people in a room and accordingly alter the lighting arrangements in the room. This satisfies the continuous need for automation of appliances in today’s tech-savvy world. Also this circuit proves to be of great help if one wants to know the number of people present in a room in order to avoid congestion.