Nowadays smart world requires, Embedded audio system with optimum design metrics for smart applications in various fields like smart car, intelligent systems and Robotics etc. This paper describes the Design and implementation of embedded Audio system for real-time applications on SOC-FPGA with optimized design metrics (low power, low-cost, low development time, low area, high speed). An electret microphone / line in are used to feed the audio input. An audio codec from Analog devices named ADAU1761 which is integrated on the zynq-7020 board. In the proposed embedded audio system, the block design in Vivado2017.2 has been modeled with VHDL; application software developed using C language in SDK2017.2. This Audio system is the optimized solution for a wide range of smart applications.