This paper proposes a advance technology which is completely innovative and creative. The urge of inventing this proposal lies on the bases of the idea of making a pen drive have an extendable memory capacity with a modern and digitalized look. This device can operate without the use of a computer system or a mobile. The computerized pen drive has a display unit to display the contents of the pen drive and in-built USB slots to perform data transmission to other pen drives directly without the use of the computer system. The implementation of the extendable memory slots to the computerized pen drive makes it a modern digitalized and extendable USB device. The implementation of an operating system and a processor to the pen drive are the main challenges in this proposed system. The design of the system is done in such a way that the device is cost efficient and user friendly. The design process and the hardware, software structures of this modern and digitalized USB device with extendable memory capacity are explained in detail in this paper.