AbstractThis paper reports the results of an investigation into the use of magnetic sensors for measuring AC currents and subsequently, estimating AC current phasors in low‐ and medium voltage AC power systems. Tunnelling magnetoresistive (TMR) sensor of high sensitivity and a wide range was used for the magnetic field measurement around AC conductor. The sensor was calibrated to overcome the inequality in the sensed magnetic field due to various aspects such as the distance from the source, minute structural variations, the magnitude of the source current, and presence of harmonics. Performance was tested for accuracy at lower frequencies such as 1, 2, 5 and 10 Hz as well as at higher frequencies such as 2nd, 3rd, 4th and 5th harmonics of the fundamental frequency. The percentage total vector error (TVE) was calculated for current phasors with input current magnitudes varying from 5 to 1500 A of various frequencies and was compared with the actual current as well as with the outputs of a high accuracy conventional core‐wound donut type current transformer (CT). The measurement accuracy corresponding to magnitude, phase and TVE during laboratory and field applications validated the suitability of TMR sensor for contactless and non‐invasive AC current measurement.