Electrical equipments in the building comprise of nonlinear loads, for instance computer, television, and electronic ballast for lighting system. Nonlinear loads can cause problems on power distribution system for example a low power factor value, high power losses and the excessive neutral current in cable, heating of the transformer and failure of the protection system. This project is conducted because the increment consumption of both linear and nonlinear load by the consumer. The objective of this project is to analyze the effects of nonlinear loads which comprising voltage and currents harmonics components on power distribution system. In this project, the nonlinear loads and power distribution system is modelled and the experiments is carried out to analyze the effects in cable which are the power factor value, power losses and neutral current. Experiment also is carried out to analyze the effect towards the protection system and temperature of the transformer. Results from the experiments shows that power factor value for nonlinear load is lower than a linear load. There is also excessive neutral currents (1.74 times phase current) flow in neutral conductor and higher power losses in cable. Besides that, as the percentage of current THD is increase, the tripping current in protection system is higher. In transformer, the temperature also increase as the percentage of current THD is increase for the same rating current. As a conclusion, this project is successfully proved the effects of nonlinear loads on power distribution system.