Indoor wireless communication is an essential part of next generation wireless communication system.For an indoor communication number of users and their device are increasing very rapidly so as a result capacity of frequency spectrum to accommodate further users in future is limited and also it would be difficult for service providers to provide more user reliable and high speed communication so this short come can be solve in future by using Li-Fi based indoor communication system. Li-Fi which is an emerging branch of optical wireless communication can be useful in future as a replacement and backup of Wireless Fidelity (Wi-Fi)for indoor communication because it can provide high data rate of transmission along with high capacity to utilize more users as its spectrum bandwidth is much broader than the radio spectrum. In this paper we will look at the different aspects of the Li-Fi based indoor communication system,summarizes some of the research conducted so far and we will also proposed a Li-Fi based communication model keeping in mind coverage area for multiple user and evaluate its performance under different scenarios .