Finding parking spotsfor automobiles is a major issue in many large and congested cities. Usually, drivers lose time searching for parking spots, especially during peak hours, which increases traffic congestion and makes drivers frustrated and annoyed. Large building parking areascould also become dangerous to women, pregnant women,and the elderly, as several criminal cases in the parking area,werereported. In this project, a prototype of a smart parking spot allocation system based on the user’s category and priority was developed. The choiceofusercategories ispeople with disabilities (OKU), pregnant women/elderly, women,and normal users. Thehighest priority is assigned to OKU, followed by pregnant women/elderly, followed by women and the lowest priority is assigned tonormal users. The parking spots for the highest priority category are placed near building entrances such as mall entrances. The controller for the automatic parking spot allocation system wasdeveloped using Verilog HDL code and the prototype wasimplemented on FPGA DE2-115. The controller is programmed to process the user’s category which is selected by the userat the second entrance and assign a specific parking spot number according to the category’s priority. The prototype was tested with multiple parking spots condition with different userinputsfor different usercategories. The system was able to allocate parking spotsbased on the user’s category depending on the parking spot availablefor the selected categorywith 75% out of 12 tests correct.However, all 12 tests,or 100% recorded accurate allocation based on the expected output of the system design.Ina conclusion,this proposed system would beable to cater to the issue offinding parking spots hence directly avoidingtraffic congestion and frustration among users. In addition, this system can indirectly reduce crime cases in the parking area due to parking spaces that prioritize categories of users needingto be parked near the entrance.