> I want to know whether there is any other method to reduce code size
Write less code. Write your functions more efficiently. Find out what libraries are being included that you don't need, and don't call them.
Look in the Map file and find out what is using the most memory.
How much is your OS taking? Is there a network stack? How big is that? Is there a File System? Ditto.
How much memory are the libraries taking?
You wrote:
> internal flash of 512 KB.. ... And more than half of the coding to do,m left clueless on how
> i will be able to accomodate all that in the Internal Flash
It is unlikely you have written 150k of code. The OS and other stacks probably take up most of that. The part that is "your project" may only make up a small part of that, and if you double that small part then there's a lot of room left between 512k and 150k.
I don't think you've got a "memory problem" at all. When you get to 511k, then you've got a "memory problem" :smileyhappy:
Are you writing in C or C++? You may be pulling in some big libraries that you don't really need. For instance, one "printf" statement can pull in a relatively huge library in order to handle every possible variation of floating point printing. If you're performing any floating point operations, they can pull in maths libraries too. Do you need floats? Get rid of all of them if you don't.
Your development environment may give you the option of a "small integer only printf library" that may save you some room. Ask in the forum specific to your development environment for that (AFTER reading the documentation then searching the forum for "library" and "printf" and so on).
For instance, the following shows how to save a MEGABYTE by loading different libraries:
https://community.freescale.com/message/50343#50343
Tom