GPS based vehicle tracking system based on the PIC microcontroller using global positioning system (GPS) and global system for mobile communication (GSM) .This is a cheaper solution than a two-way GPS communication system wherein communication is done in both ways with GPS satellites. This project uses only one GPS device and two-way communication is achieved using a GSM. GSM modem with a SIM card used here implements the same communication technique as in a regular cell phone. The system can be mounted or fitted in your vehicle in a hidden or suitable compartment. After this installation, you can easily track your vehicle using your mobile phone. This system allows you to track your vehicle anytime and anywhere. Whether you own a company with a fleet of hundreds of vehicles or you have expensive piece of equipment and you want to keep an eye on them, this tracking system can inform you of the status without you having to be actually present on the site. Here we can fix a speed limit and if it exceeds it will come as a warning message to user mobile number. SOS used to give the last location of the vehicle. If there is any problem in the vehicle and also the driver wants to alert the owner he can use the panic switch. For safety purpose password lock is used.