Reverse vending machine is a concept or an idea which inculcate the habit of recycling the waste materials. Reverse vending machine will be working by taking recyclable waste into the machine and gives a use full thing as a token of appreciation. The aim of this project is to design and fabricate a reverse vending machine which takes recyclable waste into the machine and displays a token of appreciation. The machine can accept a plastic bottle of 90mm diameter without cap and tin cans can be accepted and crushed and stored. The machine has a capacity of storing 50 plastic bottles and 50 tin cans. There basically two parts, one is the mechanical part and the other is the electronics part. The mechanical part is used to crush the recyclable waste which is kept in the machine so that more plastic and cans can be recycled and stored. The electronics part which consist of sensor and microcontroller, is used to take the correct input and segregate the waste into its respective categories and give a token of appreciation as a LCD display. The whole system is automated by the help of electronics. Combining both parts will give a reverse vending machine. Reverse vending machine will be working by taking recyclable waste into the machine and gives a use full thing as a token of appreciation. With limited resources in the world, we need to start preserving them and put an end to wastage. Being encouraged to recycle through a rewards system.To encourage recycling process we are designing and manufacturing reverse vending machine.