The Online Examination and Evaluation System is a software solution, which allows any industry or institute to arrange, conduct and manage examinations via an online environment. It can be done through the Internet Intranet and Local Area Network environments. Some of the problems faced during manual examination systems are the delays occurred in result processing, filing poses a problem, filtering of records is difficult. The chance of loss of records is high also record searching is difficult. Maintenance of the system is also very difficult and takes lot of time and effort. Online examination is one of the crucial parts for online education system. It is efficient, fast enough and reduces the large amount of material resource. An examination system is developed based on the web. This paper describes the principle of the system, presents the main functions of the system, analyses the auto-generating test paper algorithm, and discusses the security of the system.