High dependability on Instrumentation and control (I & C) systems calls utmost importance for smooth functioning as well as the safety of Nuclear power plants. I&C systems are employed for monitoring of the parameters, control of these parameters and protection of the plant and persons. The Embedded systems play major role in design and development of I&C systems. While designing I&C systems of Prototype Fast Breeder Reactors (PFBR), they are categorized into safety critical, safety related and non nuclear safety systems. Since embedded systems are used in safety systems, the hardware and software quality are of paramount importance which ensures safety and availability of the plant. The issues in designing safety systems which calls for high dependability with features like simple, failsafe, high availability to be deployed in mission critical applications. The challenges and issues in employing the embedded systems for PFBR I&C are elaborated in this paper. It discusses the standards and guidelines available for mission critical application and their suitability in adopting the latest technology. This paper also briefs the requirements, architecture, design & development methodology and qualifications of I&C systems of PFBR. The illustrations of the embedded systems designed and developed for PFBR I&C as case study are presented in this paper.