Road safety can be enhanced by the deployment of wireless communication systems for vehicular networks, which enable new services such as collision detection and collision avoidance, traffic management, adaptive traffic control and other communication facilities between vehicles on road. The 802.11p protocol modifies the 802.11 standard for wireless local area networks (WLANs) in a vehicular environment. The main application of 802.11p is vehicle-to-vehicle (V2V) communication. This paper presents the MATLAB/SIMULINK Implementation of IEEE 802.11p for vehicular area network and its application to rear end collision avoidance system with Honda algorithm. To show the efficiency of the work we also presented the case studies with different vehicle speeds.