Yesterday i was working with Magento and i need to enable SEO friendly URLs. As Mangento have lots of functionality in Admin Panel, I was looking for it in Admin panel itself. I found it and here i am sharing it with you. I hope this will help you in future.
To enable Search Engine Friendly URLs in Magento, follow the below steps.
1) Login to the Magento Admin Panel
2) Select System > Configuration
3) Select Web from left navigation (located under General)
4) Click Seach Engine Optimization and Select Use Web Server Rewrites to Yes
5) Click on Save Config
6) You are Done.