Fully controlled digital home had always been considered as a luxury of rich people because of excessive cost to install the system. It is now within the reach of mass people with lots of inexpensive cool features. In this paper we have designed and developed a very low cost, efficient and reliable Digital home system. Fully Controlled Digital Home is no more a Luxury. Our proposed system made it affordable. We built a low-cost feature-rich Digital Home System (DHS). Digital Home System is combination of automated services i.e. Electronic Device Controller, IR Security System, Web Desktop, Remote Video Surveillance System and Virtual Mobile by which we can control our home by avoiding old manual processes e.g. our physical presence at home is optional. The System provides some of the modern luxury & security features to us. Now we can control Light, fan, AC or any electronic devices by voice command, Blue-tooth, GPRS or Website. To control the system remotely, GPRS connectivity is added. We can also monitor our home from remote area by using Remote Video Surveillance System. This enables live video into mobile device of the digital home. Moreover, we can also access our PC and do the necessary tasks from any internet enabled computer in the world by using Web Desktop which is specially built for this purpose. Furthermore, access of unauthorized person in the home will be notified by SMS & store the image of the person and also generate a voice alarm. So that ensures the security of our valuable things. Also we can identify and monitor the location of our valuable assets e.g. precious metals remotely. Finally, Virtual mobile application is a Universal mobile Driver by which we can exactly perform some same task e.g. Remote call, Phone book access, SMS read-write of our mobile device from our new invented computer's virtual mobile.