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We propose an epidemic model for the transmission of hepatitis B virus along with the classification of different infection phases and hospitalized class. We formulate the model and discuss its basic mathematical properties, e.g. existence, positivity, and biological feasibility. Exploiting the next generation matrix approach, we find the basic reproductive number of the model. We perform sensitivity analysis to illustrate the effect of various parameters on the transmission of the disease. We investigate stability of the equilibria of the model in terms of the basic reproduction number. Conditions for the stability of the proposed model are obtained using various approaches. Finally, we perform the numerical simulations to discuss sensitivity analysis and to support our analytical work.