Abstract: RC4 has been the most famous stream cipher in the history of symmetric key cryptography. RC4 has been designed by Ron Rivets in 1987; it is the most widely deployed commercial stream cipher. The applications of RC4 are in network protocols such as WPA, WEP, SSL and in Secure SQL, Microsoft Windows, Apple OCE, etc. In this project, it has been focus on the synthesis and simulation of hardware of RC4 algorithm which can be implemented further.. The cipher was a trade secret but in 1994 it was leaked out. RC4 is extremely fast and its design is simple. This project deals with RC4 key stream generator, within the scope of the model of an exchange shuffle, in order to achieve better security. The main factors in RC4's success over such an extensive range of applications are its speed and simplicity. For Efficient implementations can be easily modification/editing can be performed either in software or / and hardware as per necessity. The RC4 code is written in Verilog language and based on synthesis result it can be further downloaded on FPGA for its hardware realization.