Hey friends
I am totally new, and was wondering if it was possible to establish a communication between Xbee module and a device that has Bluetooth such as smart phones.
Regards
Not as such.
The apples cannot communicate with the oranges.
Thank you very much for the reply, I mentioned I am new 
was wondering if it was possible to establish a communication between Xbee module and a device that has Bluetooth such as smart phones.
No, but you can establish communication between a smart phone with bluetooth and Arduino if you use one of the ubiquitous BT modules like JY-MCU (sold on ebay or dealextreme). This BT module is actually cheaper than an XBee, as easier to program (serial communication) and a little easier to wire (since you don't need level shifting).