Abstract: This Project aims to study the application aspects of the speech recognition; speech recognition is the process by which a computer (or other type of machine) identifies spoken words. Basically, it means talking to your computer, and having it correctly recognized what you are saying. Voice or speech recognition is the ability of a machine or program to receive and interpret dictation, or to understand and carry out spoken commands. which can be used in automation system to manage electrical equipment’s by voice only. We will restrict our attention to basic home appliances. The proposed system consists of Atmel’s AVR Microcontroller ATmega16, relay circuit and other peripherals. Codes are developed using AVR Studio IDE and HEX files are uploaded to the controller chip by using AVR Burner through Usbasp Program loader. AMR Voice is the speech recognition software that converts speech into text commands and transmits those on Bluetooth. ISIS Proteus is advance simulation software which is used to simulate the Prototype before actual hardware implementation. Upon successful recognition of voice commands, the ATmega drives the corresponding load.