In this paper, a binary phase shift modulation (BPSK) method is used for indoor Optical wireless communication (OWC) system. BPSK modulation technique is used for transmitting data at low noise and to reduce noise interference. A practical design has been developed according to the modulation technique that can be applied to the optical transmission system. The system consists of a transmitter (LED) and a receiver (PIN diode) separated by a smaller distance in a confined area. The power is measured at the receiver by varying the distance (in terms of centimeters). The measured result of the visible light communication system is used to study the performance on the basis of path loss and Bit error rate (BER). They depend on the distance and height of the transmitter and receiver. Satisfactory data rate are achieved under line of sight (LOS) condition. The results for the experimental setup are shown and the valuable results can be used for new innovations. © 2015, National Institute of Optoelectronics. All rights reserved.