Power Quality (PQ) issues and its alleviation techniques are becoming one of the vital research topics, soon after the integration of power electronic devices in power system. The non-linear nature of equipment’s introduces PQ issues such as voltage sag, swell, harmonics, unbalance and transients etc. and cause damage of end user equipment’s. Poor PQ has become a vital issue which affects production and profit of both utilities and consumers. Therefore continuous monitoring and assessment of PQ is essential for finding optimal solution to analyze and mitigate various PQ problems and also maintain quality of power within the prescribed limit. For PQ analysis, it is very difficult to generate power quality events in real life in order to observe the effects or to study their characteristics. Now days, various physical PQ analyzers are available in market to continuously monitor, analyze and record PQ problems. The major drawback of this analyzer is its hardware design, complexity and its cost which limits its usage to many places. Thus online PQ monitoring is a very big challenge for researches. This paper presents modeling and simulation of virtual PQ analyzer using Lab VIEW. Lab VIEW supports a lot of library functions for an acquisition, analysis of data and also the control of instruments. This software is mainly used to model standard real instruments used in laboratories by providing more flexibility. The proposed PQ analyzer is capable of generating, identifying various PQ problems and also measuring PQ parameters RMS Voltage (Vrms), RMS Current (Irms), Total Harmonic Distortion (THD), Real, Reactive and Apparent Power from the test system. Using Lab VIEW software, a complete quality analysis of electric energy can be done online at the user's location. So that the selection of custom power devices and mitigation methods for PQ problems can be done in a perfect manner. This RTPQ analyzer is tested using real time data of hardware are acquired by the construction of test systems such as rectifier with various resistive and inductive loads. ALL PQ parameters measured using proposed PQ Analyzer are also compared with the parameters measured using fluke PQ Analyzer. The response attained has proven that the accuracy and precision of the proposed analyzer can also be used as a very good cost effective tool for online PQ study.