Wireless Fidelity or Wi-Fi can be defined as LAN or local area network that actually uses the radio signals with elevated frequency while transmitting and receiving data over distances of a small number of hundred feet. This technology works on the basis of an Ethernet protocol. If we talk about Wi-Fi as well as Bluetooth, it is obvious that both of these technologies are being widely used in offices, homes, transferring data from PDAs to PCs. And even in certain situations while setting up the networks, they work well. If we have a look over this Bluetooth, we come to know that it is widely used in implementation of so many different new and advanced products like telephones, modems. Headsets etc. In environments where devices to be connected are near to each other and require less bandwidth, Bluetooth works very efficiently. In addition, it modifies and simplifies the detection and setup of different sort of services. These devices promote all of the services they offer. In contrast, Wi-Fi is more corresponding to the conventional Ethernet network and needs design and configurations to arrange and setup resources that are being shared, files transmission. It works with the similar radio frequencies as the Bluetooth does. But it works with elevated power output. Wi-Fi is occasionally known as wireless Ethernet.