Transformer is a salient component of AC (Alternating Current) power distribution system. It’s a static device that transfers energy from one circuit to another circuit with constant frequency and power. There are mainly two types of transformers, i.e., step-up transformers that increase the input voltage and deliver it to the load for streamline power transmission and step-down transformers that reduce the voltage and tailor it to the needs of energy customers. Therefore, transformer is a crucial component in distribution system and its lifetime can be improved by regular scrutiny and inspection. Industrial IoT (Internet of things) and remote lab techniques are discussed in this paper to monitor the health of distribution transformer. This wireless method of monitoring the apparent, active and reactive powers, predictive analysis of three-phase current and voltage would have a significant positive impact on a nation’s economy and help to prevent the loss of millions of dollars. The two components of this methodology are monitoring unit and an RTU (Remote Terminal Unit). The RTU analysis variables including vibration, humidity, rising and falling oil levels, temperature, and current. If an emergency condition occurs, a message is immediately sent to the corresponding engineer through the IoT and similarly on the webpage like “BLYNK”. After receiving the alert message over smartphone regarding the emergency condition, a solution is provided by implementing the concept of smart grids, which is an idea to create a more efficient, reliable, and sustainable electricity network that can adapt to the changing energy landscapes. In BLYNK App, the operator can detect the fault in the transformer before it happens unlike in manual health monitoring of transformer in which the operator cannot detect the fault earlier and this results in malfunctioning of transformer.