AbstractSmart grid is a modernized electrical supply network in which information is communicated bi directionally using digital communication technology. Monitoring, analyzing, controlling and communication occurs within the supply chain thus improving efficiency, reducing energy consumption etc. A Phasor Measurement Unit (PMU) or a synchrophasor measures electrical waves on grid. PMUs are used in the transmission side of the grid. These are installed at various places on the grid and are time synchronized using Global Positioning System (GPS). Thus synchronised real time measurements are obtained from multiple measurement points on the grid. PMUs provide power system automation in the grid. A network of PMUs called Wide Area Measurement System (WAMS) can be used for large scale monitoring of grid. Black outs and load shedding can thus be avoided. Creating software for PMU can help reduce the large cost and hardware complexity. PMUs can synchronously measure magnitude of voltage and current, phase angle of voltage and current, frequency, rate of change of frequency and monitors the status of PMU. A PMU is created in MATLAB which can be used as simulation software for PMU. Sine wave representing the signal is fed into the software whose parameters can be measured using appropriate method.