Power factor monitoring is an important challenge in deregulated environment to maintain quality in delivered power as well as tariff assessment. In this paper, a unique power factor measurement method has been proposed that can measure the instantaneous power factor of a non-sinusoidal single-phase system accurately at every sample instant. The Wavelet Transform (WT) has been utilized for multiresolution analysis (MRA) of current waveform. The scheme has been implemented in real time with a Texas Instruments (TI) TMS320VC5416 digital signal processor (DSP) along with data acquisition system card PCI-02. The result has been found to be satisfactory. © 2006 IEEE.