By making use of the microprocessor technology, instrumentation system becomes intelligent. In this study a programmable smart transmitter is designed and applied to the nuclear engineering measurements. In order to apply the smart transmitter technology to nuclear engineering measurements, the digital time delay compensation function and water level change detection function are developed and applied in this work. The time compensation function compensates effectively the time delay of the measured signal, but it is found that the characteristics of the compensation function should be considered through its application. It is also found that the water level change detection function reduces the detection time to about 7 seconds by the signal processing which has the time constant of over 250 seconds and which has the heavy noise.