Li-fi uses light as a medium to transfer and receive data. This system is using the environmental and ecofriendly medium of transfer ‘light’ for the sharing of data through mobiles, laptops and other electronic instruments. Energy consumption can be minimized with the use of LED illumination which are already available in the home, offices and Mall etc. for lighting purpose. Li-Fi not only requires fewer components for its working, but also uses only a negligible additional power for the data transmission. Since light cannot pass through opaque structures, Li-Fi internet is available only to the users within a confined area and cannot be intercepted and misused, outside the area under operation. Li-Fi technology has a great scope in future. The extensive growth in the use of LEDs for illumination indeed provides the opportunity to integrate the technology into a plethora of environments and applications.