As increasing the accident of Distribution Transformer (DT), we need to manage them efficiently. In this paper, we discusses with the possibility of the diagnostic technique for distribution transformer using relative ageing rate calculation in this paper. The relative ageing rate of the DT could be calculated from the measured top oil temperature, ambient temperature and load current. In order on apply the proposed diagnostic technique we developed an on line Monitoring and Diagnostic System (MDS) which has hardware and software part. Diagnostic device is developed to measure the state information of DT and to send them with R/F(radio frequency) communication. Host computer monitors and saves the receive data. The database is constructed from the data of distributed DT and it is used for estimating loss-of-life in the MDS.