Robots are machines which reduce the human efforts in heavy works by automating the tasks in industries, factories, hospitals etc. Most of the robots are run by using some control unit or components like a push button, remote, joystick, PC, gestures and by executing some command by using controller or processor. But today we are here with a Automatic Robot which moves autonomously without any external events avoiding all the obstacle in its path, yes we talking about Obstacle Avoiding Robot. In this project, we have used microcontroller and Motor driver to drive the robot and Ultrasonic sensor for detecting objects in the path of Robot. And this Robot is used to material handling system for handling the material from one station to another station. The robot can efficiently and accurately move product from one location to another. Material handling applications include material transfer and machine loading and unloading. Material-transfer applications require the robot to move materials or work parts from one location to another. In robotic processing operations, the robot manipulates a tool to perform a process on the work part. The world robotics is used to collectively define a filed in engineering that covers the mimicking of various human characteristics. It must be able to perform certain task we set for it. The desired task must be achieved within some given limitations. It may be human controlled or automatic.