At present time data communication is a keyword to our life. It’s a time of IOT revolution. Lots of devices around us communicate with each other or they send data to internet. Some of the popular data communication protocols are like Bluetooth, Zigbee, Infrared, wifi, Wlan etc. In this project a similar type of wireless data communication system is designed. Some of the key factors of data communications systems are wireless, covered distance, data transfer speed, security or encryption etc. In this paper we have proposed a RGB color based data communication system. In this system each device is a transceiver. Each device contains of 16bit RGB color sensing module and RGB led. To transfer data from one device to another transmitting module encode raw data to a 16bit combination. This 16bit combination is transferred to RGB led and the color of this 16bit combination will glow. The receiving module will read this color and decode the color into 16bit data. This data is the raw data which we want to receive from the transmitter.