The need of this era is a fully automated vehicle parking system using IOT. The real time notification is made possible by integrating a Micro-controller (Arduino) with a wireless communication system (ZigBee) and is feed to the driver via a smart phone. This technique provides a time and energy efficient way to communicate information between sender and receiver. Additionally, this efficient system provides a better monitoring and control application for shopping malls, restaurants, offices and hospitals. In severe cases, this system will also update crowd capacity information to ambulance service, so that they could easily tackle the situation by adopting the less crowded area towards hospital. The comparison between experimental results of ZigBee with other popular wireless technologies such as Wi-Fi and Bluetooth show that it is more energy efficient. GSM module notifies the driver about the current location of empty parking spaces via SMS or software application. The IR sensors embedded in the parking lots provide the real time scenario to user with all possible details and allowing the easy access to parking lots available, ensuring minimal human interaction.