Abstract: This thesis is concerned with the study of realizing reliable and secure twoway communication in the presence of a passive eavesdropper (Eve). Our approach achieves perfect information theoretic secrecy via a novel scheme that employs both random binning and channel prefixing. The key idea is to let both users jointly optimize the prefix channel distributions, such that their new channel conditions are favorable compared to Eve’s channel. Random binning is then used to exploit the secrecy advantage offered by the cascade channel. An achievable rate region for the general discrete memoryless channel is provided, and a corollary for the modulo-two channel is given. Next, a practical setting, where the nodes have half-duplex antennas, is explored for the modulo-two and Gaussian channels. In the Gaussian setting, the channel coefficients are based on a free space path loss model. In this setting, we use a randomized scheduling and power allocation scheme, where we allow Alice and Bob to send symbols at random time instants. While Alice will be able to determine the symbols transmitted by Bob, Eve will suffer from ambiguity regarding the source of any particular symbol. This desirable ambiguity is enhanced, in our approach, by randomizing the transmit power level. Finally, we interpret our results in an experimental setup using IEEE 802.15.4-enabled sensor boards, and show that a Wireless Body Area Network (WBAN) is a natural application to our approach.