In this thesis, a monitoring and diagnostic system for distribution transformer is proposed. The system consists of three parts including transformer sensing data logger, data reader and transformer diagnostic system. The sensing data logger will measure and record transformer’s loading temperature and/or current. Taiwan Power Company’s service engineers can read the stored temperature and/or current profile in data logger by handheld data reader through radio frequency. The retrieved data is brought back to the main computer and transferred to the transformer diagnostic system in the main computer. The diagnostic system will monitor the load variations and estimate transformer’s damage based on the monitored data.