In order to use Magento's feature for more user and search-engine friendly URLs, you have to login to the Magento's administration area (usually * http://YourDomainName.com/admin/* ), click on the *Configuration* button, under the *System* navigation menu, switch to the *Web* page from the sub-navigation panel on the left side of the page.

When the page loads, you will see blue lines, which represents closed settings tablets. Click on the *Search Engines Optimization* tab, and turn on the *Use Web Server Rewrites* (mark as *Yes)*. Click on the *Save Config*button and you are done.

Now you have enabled user-friendly URLs in Magento.