This paper describes the design and development for a cost-effective home automation and security system with the use of Arduino and GSM technology. The cellular communication is a potential solution for the control of appliances remotely. A homeowner will be able to monitor and control the appliances at home remotely by sending a set of commands i.e., Short Messaging System (SMS) messages to the Global System for Mobile Communication (GSM) module. This system also deals with a Passive Infrared motion sensor, a password for the door lock and a camera. Data from all of the sensors is received and processed by Arduino Uno board which is the microcontroller unit. Thus, the system provides automation, safety as well as security for the authorized personnel.