Abstract: The objective of this study is to present different communication methods in Second Life virtual world, its implication on social networking, business and future scope. The current study is a review of various literatures relating to social networking, virtual community, virtual reality and online business in Second Life. The study has shown the strong and competitive advantages of Second Life among other virtual worlds and the contributions it has made on real life through communication and its impact on social networking and online business opportunities in virtual environment. The outcome of the findings have real world implication and useful to policy makers, managers and leaders for sharing information and decision making. The Second Life virtual environment based on web 2.0 technology has opened a wide platform on social, behavioral and information system research.