Continuous and rapid growth of nonlinear load increases the harmonics and reactive power consumption in distribution system. Now a days power quality has become very dominant issue in residential system also. This paper studies the harmonic impact of modern residential load on distribution system. The energy consumption and total harmonic distortion (THD) pattern of nonlinear load is measured and collected. One modern residential house is investigated for the measurement of THD for new household appliances using Power Quality Analyzer. Based on measured data of THD, location and type of filter is advised to enhance the power quality in residential system.