Abstract: The lathe machine has two axis i.e longitudinal and transverse which are manually controlled by rotation of handwheel. This leads to error causing dimensional variation This research paper presents a real-time monitoring system for a transverse axis movement of lathe machine tool that uses a 400-pulse rotary encoder to measure the rotation of the lead screw in degrees from 0° to 360°. An Uno Arduino is utilized to set the program of the encoder shaft's rotation and the program of 360° rotation of the encoder, which is connected to the lead screw of the lathe machine through a muff coupling. When the lead screw rotates 360°, the tool moves forward by 10.20mm for a cut. Three displays are used to display the rotation of the encoder, the count of rotation, and the cut of tool. An SMPS power supply is employed to provide electrical power.