In this research project, we mainly focus on designing and developing a prosthetic hand using microcontrollers, sensors and feedback for physically challenged. The control and movement of prosthetic hand will be done through the other normally functioning hand. The prosthetic hand will be availed with 2 degrees of freedom, that is, elbow movement, wrist movement and finger movement for pick and place function. The main objective of this project is to provide better working conditions to physically challenged and help them do their day to day activities themselves. Rehabilitation device for arm amputees, that is, an artificial arm which mimics the motion of the normally functioning arm was done with the help of flex sensors and potentiometers.