The maintenance of a distribution transformer to ensure durability requires close monitoring and control. In the time past such transformers were allowed to operate until breakdown occurs. This usually results to long period of down time due to cost implications. This project is aim at designing a model that could be used to monitor the important parameters of the system such as oil level, voltage, current, and temperature levels. Sequel to this, control actions necessary to prevent unexpected breakdown and improve the reliability of power substations are carried out. This project also implements a sensitive data acquisition system by exploiting the versatile capabilities of the PIC microcontroller and by employing some other engineering techniques such as the hardware design and software development. Test results show that the system performs well with high level of system sensitivity and accuracy.