Underwater communication has traditionally relied on acoustic and radio frequency (RF) signals, which suffer from limited bandwidth, high latency, and signal attenuation in water. This paper explores the implementation of Light Fidelity (Li Fi) technology for high-speed, energy-efficient underwater communication. The proposed system utilizes an LED matrix-based transmitter and a photodiode-based receiver to enable optical wireless data transmission in aquatic environments. Unlike laser-based systems, the LED matrix offers wider beam coverage and lower power consumption, making it a viable solution for underwater IoT applications. The study evaluates the system’s performance under different water conditions, including varying turbidity levels and transmission distances. Experimental results demonstrate that Li-Fi can achieve reliable data transmission over short to moderate distances with minimal interference. Future enhancements, such as AI-driven adaptive modulation and hybrid Li-Fi acoustic communication, could further optimize underwater connectivity for applications in marine exploration, defense, and environmental monitoring.