Electric arc furnaces (EAFs) used in the iron and steel manufacturing industry for melting and refining scrap metals are one of the most disturbing loads that exhibit unbalanced and highly nonlinear characteristics. Serious voltage fluctuations occur in the power system as a result of the rapid change in the current drawn from the grid by the EAF. Voltage fluctuations lead to a power quality problem known as flicker, which is defined as observable changes in light sources that affect the production environment, cause eye fatigue in personnel, and lower the work concentration levels. To investigate the voltage flicker problem, an accurate mathematical model describing the behavior of the EAF load is required. In this study, a dynamic EAF model that can be adjusted to different operating conditions has been developed in the time domain. The electric arc voltage has been modeled as an externally controllable voltage source. The instantaneous arc voltage has been expressed as a function of the arc length independent of the current. The arc resistance, which varies with time and is nonlinear, has also been calculated with differential equations using the instantaneous arc voltage value. To measure the short-term flicker severity index caused by the EAF in the power system, a flicker meter in compliance with the International Electrotechnical Commission (IEC) 61000-4-15 standard has been designed. The current-voltage characteristics of the EAF, its effect on the power system, and the flicker severity occurring at the point of common coupling (PCC) have been analyzed with simulation studies using the PSCAD/EMTDC software. Besides, the simulation results of the dynamic model of the EAF have been compared with the results obtained from the model based on the measured field data.