Embedded devices are becoming more popular and used in network communications. These devices are now used commonly for storing data and exchange of data through public networks. Wireless networking imposes threat to the sensitive data. To protect sensitive data against threat embedded devices are designed with inbuilt security features. The sensitive data is encrypted before transmission so that only authorized user can have access to such information. Hardware implementation of encryption algorithm is helpful in designing secured Embedded System. VHDL based Blowfish algorithm implementation and analysis is discussed in this paper. The algorithm is implemented with different keys and timing required for encryption, decryption are presented.