This paper discusses the methodologies used by hackers to compromise systems, including different types of hackers such as white, black, and grey hats, as well as the exploitation phases and tools employed during penetration testing. It outlines the hacking process, highlighting phases like reconnaissance, scanning, identifying vulnerabilities, and exploitation, and describes a cyber laboratory setup using virtual machines for demonstration. The paper emphasizes the need for effective cybersecurity measures and ethical hacking to mitigate vulnerabilities and protect systems from cyber-attacks.