Weather monitoring and forecasting system plays an important role nowadays in all the aspect of science, trade and other fields not limited to the field of cultivation, farming, fishery, naval trade, shipping, military operations, air navigation etc. Wind speed and wind direction is one of the most vital weather variables like moisture, pressure, temperature, density, rain forecast, solar radiation, clouds, air masses, fronts and storms. In this paper, a low cost PIC16F887 microcontroller based portable wind speed and wind direction monitoring system called an anemometer is designed & experimented. The designed anemometer is divided into two parts namely mechanical and electrical parts. Both parts are developed, designed and tested in this research work. Wind turns the cup of Anemometer and produced mechanical energy that converted to electrical energy or signal. The electrical signal or pulse intervals determine by the microcontroller and generate consequence pulses to find out the wind speed. The programming codes inside the microcontroller helps to extract the voltage drops measured from a potentiometer connected to the mechanical part of Anemometer and intellect the wind direction precisely. A lucrative 16x2 liquid crystal display (LCD) is used to display the wind speed and direction.