Communication between various devices makes it possible to provide unique and innovative services. Many standards exist today for connecting various devices. At the same time, every device has to support more than one standards to make it inter-operable among different devices. There are many such technologies/standards and notable among them are Bluetooth, IrDA (Infrared Data Association), Home RF (Radio Frequency) and IEEE 802.11. This paper compares the most popular short-range wireless technologies: Bluetooth and IrDA. At first glimpse, it may appear that IrDA and Bluetooth technologies compete with each other in the marketplace. Industrial analysis has openly wondered whether both technologies can survive, given that both provide short-range wireless connectivity. But if we examine the benefits of each technology, we can say that Bluetooth and IrDA are both critical in marketplace. Each technology has benefits and drawbacks and neither can meet all user’s needs. Bluetooth’s ability to penetrate solid objects and its capability for maximum mobility within the piconet allows for data exchange applications that are very difficult or impossible with IrDA. On the other hand, in applications involving one to one data exchange, IrDA is an advantage over and beats Bluetooth on the cost front. IrDA is a competing technology and has been implemented in many products for over 6-7 years. At present, however, Bluetooth has a few distinct advantages with Ericsson/Microsoft. Intel team behind it.