This document discusses designing a monitoring system for distribution transformers using sensors and a microcontroller. It compares different temperature sensors, controllers, and communication modules that could be used. LM35 temperature sensors and ACS712 current sensors are selected to monitor transformer temperature and current due to their specifications matching needs. An Arduino Uno microcontroller is chosen as the controller for its low cost and ease of programming. An ESP8266 WiFi module will transmit sensor data to an application where the monitored parameters will be displayed, allowing real-time transformer monitoring. The system aims to reliably detect faults and improve transformer protection.