Power quality monitoring is critical in ensuring the efficient and reliable operation of industrial systems. This paper presents a MATLAB-based simulation approach for power quality monitoring, providing a cost-effective and scalable solution for industrial applications. The idea behind this paper is to design and simulate a comprehensive power quality monitoring system that includes voltage and current measurement, harmonic detection, waveform analysis, and microcontroller-based data processing. This simulation environment allows for the evaluation of various power quality parameters and the optimization of system parameters for accurate assessment. The abstracted system integrates sensor data acquisition, signal processing algorithms, and communication modules within the MATLAB framework. Through extensive simulations and parameter tuning, the system can effectively detect and mitigate power quality issues such as harmonics, voltage sags, swells, and transients. This paper significance lies in its ability to offer a robust, cost- effective, and customizable solution for power quality monitoring in industrial settings, ultimately ensuring the longevity and reliability of critical equipment and processes. The presentation will provide insights into the design, simulation, and potential real-world implementation of this MATLAB-based power quality monitoring system. Keywords –Harmonics, THD analysis, Fault correction, FFT analysis, Matlab simulation.