This project focuses on implementing a modified blowfish algorithm using a hardware description language such as VHDL. Encryption algorithm plays a major role in network application and data security systems. But securing data consumes a major amount of CPU time and battery power. We also focus on improvising the performance and security provided by the blowfish encryption algorithm. With the advancement in technology, DES is found to be no longer secure. As a drop-in replacement for DES, the blowfish encryption algorithm can be used. The original blowfish algorithm function has been modified using a modified S-box and adding Key Bits Shifting (KBS) to the Function Block.