Abstract -This project proposes an innovative parking reservation system which could be used in huge parking areas. The proposed system will reduce the unnecessary time consumption required for finding the exact location of the available parking area. It also provides with an automatic money collection which could make the work of the vehicle owner simpler. The system provided is a completely automated on with the use of an ARM controller. The controller would accept the request along with the vehicle number from the vehicle owner by using the GSM Modem and also stores the availability of the parking slots with the help of cameras. The controller also responds to the vehicle owner about the availability of slots. When the vehicle arrives the second camera would sense the number plate and inform the controller to open the gate. We also provide with a RTC which notify of the exact arrival and the departure time of the vehicle. The demonstration has proven the capability of the system to reserve the parking, gain entry to the parking area and hence eliminates the hassle of searching empty parking lots.