Generally, a distribution transformer is used for stepping down the voltage to a level required by the consumer. The additional attachments include current sensor, voltage measuring circuit, S PS T relay, a resistive load. This paper deals with a system that can automatically monitor and control a 1KVA distribution transformer by interfacing ATmega328. The transformer parameters current and voltage are monitored using current sensor and voltage measuring circuit respectively and the values are interfaced to ATmega328. They are further controlled automatically us ing relay tripping circuit.