This document describes an automatic power factor correction system that monitors the power factor of an electrical load and uses capacitors to correct the power factor as needed. The system includes components like a potential transformer, current transformer, capacitor bank, microcontroller, and relays. The microcontroller determines the power factor from voltage and current measurements. When the power factor is low, indicating a lagging load, the microcontroller activates relays to connect capacitors in parallel with the load. This improves the power factor by supplying reactive power to the circuit. The system was able to automatically correct the power factor from 0.85 lagging to 0.99 when an inductive load was used. Automatic power factor correction can help reduce electricity bills by improving