This paper investigates the effects of voltage and current harmonics of DC&AC drives on the supply transformer in Mazandaran Wood&Paper In dustries (MWPI). Current harmonic distortion caused by electrical drives increase winding eddy and stray losses of transformer therefore, winding hot spot temperature of transformer goes up and its life will be de creased. By employing two point power quality monitors, actual harmonic contents in main incoming supply and different sections of the factory are investigated. The transformer loss of life is evaluated using realistic data for different transformers of the plant