Over 10 % of the world's population, 800 million people, are suffering from hearing loss, and if they were to be taken into account it would be the third largest nation in the world. Current production of hearing aids meets less than 10 % of global need. About one out of forty people have hearing aids in developing countries. Moving in traffic without anybody's help and calling others who are not in distance reachable by hand is a major problem faced by hearing and speech impaired people. The aim of the paper is to enable the hearing and speech impaired people recognize the horn sound of vehicles and make their interaction easy with other people having similar disabilities. So, to address this problem there is a need for a device which can assist the hearing challenged people responding to important sounds. This paper proposes a sound alert system which can detect horn sound and gives an alert, and also it can help them in calling one another, when they are in indoor environment. The sound alert system works with the help of microphone, an analog circuit and a microcontroller unit in traffic mode, and on the other hand with the help of a wireless communication module in the interaction mode.