In present days, in our global evolution people like businessmen, employees no one will there without having a car. Mainly in cities, many of the cars are being used by the people for offices, shopping’s and for many more. But the main problem here is where to park these vehicles, because the parking place of the cars may be so congested, in some places as the numbers of cars are more than the place of parking. Radio Frequency Identification (RFID) Card Readers provide a low-cost solution to read passive RFID transponder tags up to 2 inches away. The RFID Card Readers can be used in a wide variety of hobbyist and commercial applications, including access control, automatic identification, robotics navigation, inventory tracking, payment systems, and car immobilization. The RFID card reader read the RFID tag in range and outputs unique identification code of the tag at baud rate of 9600. The data from RFID reader can be interfaced to be read by microcontroller or PC. This project is built on an 8051 micro controller; in this project each user is assigned an RFID card which holds a unique serial number. When a valid user with a card enters into the parking area of an apartment or office or a gated community, his card is authenticated and shows the available car parking slot next to the previous car, if the card is not authorized at that community, then a buzzer is activated to inform the security personnel. A motor is also interfaced to the system which opens the gates for authorized entries. An LCD is interfaced to the project to display the status of the system. The RFID reader is interfaced to the microcontroller by a serial communication interface. This project uses regulated 5V, 500mA & 12V, 500mA power supply. 7805 and 7812 three terminal voltage regulators are used for voltage regulation. Bridge type full wave rectifier is used to rectify the ac output of secondary of 230/12V step down transformer.