The importance of network security is rapidly increasing as more and more business is conducted via these systems. The proposed honeynet system can be used to detect bots or malware based on the evaluation of events occurring within a computer network. A honeypot is a trap set to detect, deflect or in some manner counteract attempts at unauthorized access to information systems. A honeynet (a network consisting of 2 or more honeypots) is used for surveillance of larger or more diverse networks for which one honeypot may not be sufficient. Honeynets are fast emerging as an indispensible forensic tool for the analysis of malicious network traffic. Honeypots can be considered to be traps for hackers and intruders and are generally deployed complimentary to Intrusion Detection Systems (IDS) and Intrusion Prevention Systems (IPS) in a network. Proposed system would be capable of providing cures for new fatal viruses which have not yet been discovered by security firms.