The “Wireless Data Communication Between Two PCs Using RFM12b” is a microcontroller-based system, designed to provide the wireless data communication. The main aim of the project is to design and build a simple wireless chat example project, demonstrating use of the RFM12B wireless transceiver module. It consists of two identical module each connected to a PC ; transmitter and receiver module in which data is transmitted as well as received in both sides. One user types a message at one PC, which will be transmitted and read by another user. Both sides of the wireless link are capable of transmitting and receiving. Each module consists of microcontroller, RFM12B for transmitting as well as receiving purpose. The RFM12b is used with ATmega8 microcontroller. C language is used for programming. Programming of the AVR microcontroller is done via USBasp programmer. The wireless text chatting between two PCs is accomplished by using radio frequency in universal ISM band to transmit and receive data. The transceiver module RFM12B, helps for quick and easy communication with a great efficiency and at low cost for small local area communication in Colleges, Workstations, offices etc.