The setup is based on the concept of free space optical communication. In this process, communication between PC to PC using LASER light is established. The project uses IC MAX 232, which needs only a single power supply of 5V (for TTL to RS-232 and vice-versa level conversion). The communication over the short distance of 2-3 m is possible using IR diodes. The range could be increased up to hundred meters, using the laser diode module in place of IR LEDs . The laser module used is easily available as laser pointer (having about 3 mW power output). The laser beam of one module is pointed on to the photodiode of another module connected to other PC and vice-versa. By loading serial communication software and setting the port parameters to 9600 n 8 1 (here, 9600 represents baud rate, n stands for parity none, 8 represents bits per character and 1 indicates no. of stop bits)communication is established. The software program for the purpose is written in C language. Using this codes chatting and data transfer between two nodes is possible on condition that Line of Sight must exist between two nodes. © EuroJournals Publishing, Inc. 2012.