A power distribution company, along with any other company that consumes a significant amount of energy, has a substantial demand for dependable power to earn income and produce goods. According to the research findings, transformers are precious assets for businesses; hence, the maintenance and replacement of transformers are considered a luxurious activity for every business institution. Considering the factors above, this work develops an IoT-Driven Distribution Transformer health monitoring system for smart power grid. Remotely monitoring the health of distribution transformers at predetermined intervals is the objective of this system. Changes in current values on phases, phase failure, overvoltages, overcurrent, earth fault, undervoltages, oil temperature, body temperature, and load ability are just a few of the factors that are used to calculate the health index. Sensors detect these factors. It has been decided that Arduino will serve as the processor for transferring the data that has been sensed, and that the Blynk App will serve as the Internet of Things platform for presenting the data that has been received. The installation process occurs in the physical vicinity of the distribution transformer. After being processed, the values output by the sensors are stored in the system's memory. The system has predefined instructions to detect abnormal situations, which are automatically updated via serial communication on the internet. It is possible to put this low-cost technology in transformers anywhere so they can be monitored remotely. This not only helps assess the health state of the transformers but also assists in projecting their anticipated lifespan. The Internet of Things (IoT) can optimize transformer usage and detect potential issues before catastrophic collapse. An online-measuring system collects and analyzes data on oil temperature, body temperature, voltage, and current, enabling Transformer Health Measuring to identify unforeseen circumstances, resulting in increased reliability and cost savings.