abstract: Dynamic loading is the term used for one way of optimally loading a transformer. Dynamic loading means the utility takes into account the thermal time constant of the transformer along with the cooling mode transitions, loading profile and ambient temperature when determining the time-varying loading capability of a transformer. Knowing the maximum dynamic loading rating can increase utilization of the transformer while not reducing life-expectancy, delaying the replacement of the transformer. This document presents the progress on the transformer dynamic loading project sponsored by Salt River Project (SRP). A software application which performs dynamic loading for substation distribution transformers with appropriate transformer thermal models is developed in this project. Two kinds of thermal hottest-spot temperature (HST) and top-oil temperature (TOT) models that will be used in the application--the ASU HST/TOT models and the ANSI models--are presented. Brief validations of the ASU models are presented, showing that the ASU models are accurate in simulating the thermal processes of the transformers. For this production grade application, both the ANSI and the ASU models are built and tested to select the most appropriate models to be used in the dynamic loading calculations. An existing application to build and select the TOT model was used as a starting point for the enhancements developed in this work. These enhancements include:  Adding the ability to develop HST models to the existing application,  Adding metrics to evaluate the models accuracy and selecting which model will be used in dynamic loading calculation  Adding the capability to perform dynamic loading calculations,  Production of a maximum dynamic load profile that the transformer can tolerate without acceleration of the insulation aging,  Provide suitable output (plots and text) for the results of the dynamic loading calculation. Other challenges discussed include: modification to the input data format, data-quality control, cooling mode estimation. Efforts to overcome these challenges are discussed in this work. / Dissertation/Thesis / M.S. Electrical Engineering 2011