Current technology and trend have made designing and implementation of embedded systems for home automation has increased the capabilities and features. There is a demand for smart home automation access via virtual reality. The proposed system allows the owner to access via virtual reality and control the home appliances. This is very easy to access. In this paper, we present the design and implementation of a low cost but yet flexible, feasible and secure virtual reality-based home automation system. In our proposed system we will try to control light, motor and 230v supply.This work also demonstrates the use of virtual reality in the context of the appliance control. In this project, we have used image processing techniques for image acquisition, pre-processing, image segmentation and feature extraction. The user commands are captured by the camera and transmitted through wireless communication to the receiver end. Thus our project has a huge scope for training and development business using a virtual image and setting up a virtual environment.