Power quality has become a topic of concern due to extensive emphasis by power utility on the power system efficiency and customer awareness of power quality issues. This has occurred mainly due to the sensitivity of the modern equipment which are non- linear in nature and thus results in deregulation of the power distribution system. In addition, there are usually very high losses both to power utility and consumers due to poor power quality supplies which are below the set standards. Power quality parameters consist of voltage dips and swells, interruptions, harmonic distortions, voltage flickers, transients and frequency deviations. Among all harmonics are one of the major power quality concern. This paper mainly looks at effect of CFL lamps and Incandecent lamps on system in relation to harmonic distortions and low power factor. Power Quality Analyzer FLUKE 435 is used to carry out the harmonic analysis. The practical set-up used for this is available at NITTTR Chandigarh. The recorded harmonic data has established that the bulbs generate harmonic distortions above standards and leading power factor. Moreover combination of incandescent and CFL lamps was noted to improves the power quality.