This paper develops a smart vehicular communication system using Li Fi technology which provides protection against vehicular collisions on the roads. Li Fi (Light Fidelity) is an emerging technology which uses the visible light spectrum for communication. This project focuses on the safety on roads in which the headlights, which consists of LEDs acting as transmitter communicate with photo sensors acting as receiver. White LEDs used in the head and tail lights can effectively be used for short range communication with the photodetectors. The application is cost effective as LEDS are cheap and simple algorithms are proposed for signal generation and transmission. The basic transceiver circuits are implemented and the results are given. Simulations of the experiment are done using Proteus 8 Professional. © 2016 IEEE.