We are developing a system “Automatic Car Parking System” which will be controlled by a single chip micro controller. The system is developed using the puzzle logic. In big cities and multistory building, there is no enough space for parking the cars in multi floor fashion. Let’s consider the case study of “Taj Hotel” in Mumbai where number of floors and numbers of rooms and flats are available in same building. It is highly impossible to park the cars on the ground floor only. We are utilizing a lift system for each column. The cars can be moved in vertical and horizontal fashion. The incoming and outgoing cars are first coming in entrance, and then the user will press his allotted button and leave his car. The car will be automatically located at its pallet place. Similarly, when user has to go outside, he will come in the entrance and will call his pallet number. His car will be available in the entrance. On each floor, one pallet has to be kept free so that the puzzling can be made possible. The cars are parked automatically with belt and pulley systems. Thus, plenty of cars can be parked in this fashion. The limit switches will be fitted in mechanical assembly. These switches will sense whether the car is on the pallet is present or not. The logic high and low signals will be given to micro controller as the input. The keyboard connections will go directly to the CPT AT89C51 as the input. The micro controller is provided with Tran receivers and pulls up resistor in order to avoid the tri-state logic situations. The relay board is drive by the micro controller with its output port. These relays are made ON and OFF as per the commands received by the user from the keyboard and the limit switches.