Online examination system is a web-based examination system where examination is taken online i.e. through the internet or intranet using computer system. It is an effective solution for mass education evaluation. We have developed an online examination system based on a Browser/Server framework using Microsoft Visual Studio 2008 for the design, C# 3.5 for coding, and Microsoft SQL Server as database. ASP.NET is the preferred web technology. The system carries out the examination and auto-grading for multiple choice questions which is feed into the system.KEY WORDS: Online, Examination, System, Auto-grading, Web-based.