Solid State relay based single phase power quality disturbance generator is proposed in this paper. Digital control system based on microcontroller 89C51 is implemented to control the duration of power quality disturbances. Voltage sag, swell and interruption are generated. Dimmerstat is used to change the voltage levels and so to control the intensity of disturbances. Design of proposed generator is discussed. Simple design and use of easily available components makes this generator economic. It is highly suitable in power quality laboratory for experimental work. Students working on voltage sag/swell compensation and monitoring of power quality events can use this generator. Proposed generator is used as an application for PC based real time power quality monitoring system. Monitoring system is designed in LabVIEW. For fetching the real time signal, voltage sensor and data acquisition system are used. Results of real time detection of disturbances and classification of disturbances into momentary, temporary, instantaneous and under voltage or over voltage are done by monitoring system and presented in this paper.