Bluetooth communication enables effective data sharing for a wide range of applications, from audio streaming to IoT devices, boosting user ease and productivity. Bluetooth security difficulties stem from flaws in encryption mechanisms, which could allow unauthorized access or data interception. Current flaws include vulnerability to eavesdropping and device spoofing, emphasizing the need for improved security measures. The hybrid encryption technique suggested in this paper is a tribute to unprecedented innovation in Bluetooth security. It pioneers a multi-layered approach to data protection by seamlessly integrating AES, Blowfish, RSA, and SHA-256. This algorithm not only answers current security concerns, but it also teaches how to use cryptographic approaches strategically. Furthermore, its prudent use of RSA, which minimizes computing overhead, demonstrates a forward-thinking approach to combining security and efficiency. The algorithm's astounding great accuracy after multiple tests demonstrates its practical practicality, confirming its potential to transform Bluetooth security procedures. This effort establishes a new cryptographic standard, altering the landscape of wireless communication security.