Power quality is related to the phenomena such that voltage and current in an electric power system deviate from an ideal sinusoidal signal. Power quality it is of great concern due to the increased penetration of power electronics-based equipment and embedded generations in microgrid system. The monitoring steps consist of different levels in microgrid. Where the sensors collect signals, stores and classify events. These are then sent to the central monitoring power quality analyzers for further analysis to avoid unnecessarily transmitting a huge amount of data. The final objectives of microgrid monitoring system are to continuously monitor the power quality and to assess the health of the system in terms of availability and reliability. The aim therefore, in this work, is to identify the appropriate algorithm in the area and thereby to recommend measures that can enhance the quality of the power.