This project discussed about a brain controlled home appliances based on Brain–computer interfaces (BCI). BCIs are systems that can bypass conventional channels of communication (i.e., muscles and thoughts) to provide direct communication and control between the human brain and physical devices by translating different patterns of brain activity into commands in real time. With these commands some home appliances can be controlled. Here, we are analyzing the brain wave signals. Human brain consists of millions of interconnected neurons. The patterns of interaction between these neurons are represented as thoughts and emotional states. According to the human thoughts, this pattern will be changing which in turn produce different electrical waves. A muscle contraction will also generate a unique electrical signal. All these electrical waves will be sensed by the brain wave sensor and it will convert the data into packets and transmit through Bluetooth medium. It sends to pc LabVIEW to know which signal is generated from the sensor. These signals are then transmitted to 8051 microcontroller using max232. Then the instructions will be sending to the home section to operate the modules (bulb, fan). The project operated with human brain assumption and the on off condition of home appliance is based on thinking of the brain.