Now-a-days, the RF spectrum is used for most of the applications and automation. This is leading to the inadequacy of the RF spectrum for the human and machine requirements. As a solution to this crisis, we have proposed the use of Li-Fi (Light-Fidelity) as an alternate mode of communication. Wireless communication inside buildings and indoors is an important part of the next generation wireless communication system and these concepts can be applied to external wireless communication. Li-Fi provides high data rate (Up to 10 Gbps), improved security and high capacity to support more users. The spectrum bandwidth of light is very large, resulting in accommodation of more number users. A hybrid model of Wi-Fi and Li-Fi increases the advantages and applications, resulting in the best of both communication techniques. This paper describes the hardware implementation of Li-Fi based on IR transmitter and receiver and gives an overview of the signal conditioning for the implementation of a Li-Fi based system. This is followed by the simulation of a Multi nodal Li-Fi based system in MATLAB for determining the coverage, received power, SNR and output signal. With half angle as the variable, the coverage of an entire Multi nodal Li-Fi based system along with signal strength and other parameters can be determined. It also proposes a machine learning algorithm for selecting the best channel by considering factors like the received power, varying noise, etc.