Early detection of bifurcations and chaos and understanding their topological characteristics are essential for safe and reliable operation of various electrical, chemical, physical, and industrial processes. However, the presence of non-linearity and high-dimensionality in system behavior makes this analysis a challenging task. The existing methods for dynamical system analysis provide useful tools for anomaly detection (e.g., Bendixson-Dulac and Poincare-Bendixson criteria can detect the presence of limit cycles); however, they do not provide a detailed topological understanding about system evolution during bifurcations and chaos, such as the changes in the number of subcycles and their positions, lifetimes, and sizes. This paper addresses this research gap by using topological data analysis as a tool to study system evolution and develop a mathematical framework for detecting the topological changes in the underlying system using persistent homology. Using the proposed technique, topological features (e.g., number of relevant k-dimensional holes, etc.) are extracted from nonlinear time series data which are useful for deeper analysis of the system behavior and early detection of bifurcations and chaos. When applied to a Logistic map, a Duffing oscillator, and a real life Op-amp based Jerk circuit, these features are shown to accurately characterize the system dynamics and detect the onset of chaos.