Controller Area Network (CAN) is an attractive alternative in the automotive and automation industries due to its ease in use, low cost and provided reduction in wiring complexity. It was developed by Robert Bosch for communication between various digital devices inside an automobile where heavy electrical interferences and mechanical vibrations are present. This project is aimed at the implementation of CAN protocol using PIC for vehicle monitoring system. The main feature of the system includes monitoring of various vehicle parameters such as Temperature, presence of CO level in the exhaust, Battery Voltage and Light due to spark or fire. The software part is done in MPLab IDE using Embedded C. Schematic is prepared using OrCAD. Hardware is implemented and software porting is done.