Abstract This paper presents the design of a novel distributed measurement system for power monitoring via the Internet, called IP Power Sensor. The IP Power Sensor, a typical application of smart network sensors, offers portable design architecture for Internet-based remote monitoring. Based on IEEE 1451 standard, the IP Power Sensor is composed of smart transducer interface module (STIM) and network capable application processor (NCAP). STIM performs the tasks of measuring electric-parameters and saving information from the sensor, while NCAP enables the sensor to enter into the Internet and work as a web server. Meanwhile, the web-based human–machine interface and the tool software have been developed to allow users to configure the IP Power Sensor's adjustable parameters, to upgrade its web pages, and to monitor and archive the real-time measured electric-parameters. Furthermore, a prototype is built for the performance tests in the real industrial fields. Experimental results show that the designed IP Power sensor is feasible for power monitoring.