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This paper work aims at design and implementation of a three-phase Voltage Source Inverter. DC to AC Converter are widely used in the area of renewable energy and in Industrial Drives. Generally, Inverters are used in high power applications for driving Industrial based Motors. Speed Control of Induction Motor is widely done through three-phase Inverter and Inverter convert the DC input from the solar panel to the mains. Hence designing the cost-effective inverter with less harmonics has always been a challenge in the area of Power Converter. This paper explores the design methodology and focuses on designing a simple and cost-effective control circuit for a three-phase Voltage Source Inverter. The switching logic is implemented in a microcontroller (Arduino) and the driver circuit is designed using TLP350 (optocoupler). MATLAB/Simulink and Hardware Design of Three-phase Voltage Source Inverter for 120° mode has been done and it is use to drive 1H.P Three-phase Induction Motor. Designed Inverter was studied and its Harmonic Analysis was done and compare using power analyzer. Both the Hardware and Simulation of three-phase VSI has been explained, compared and is verified. HARDWARE DESIGN OF THREE PHASE VOLTAGE SOURCE INVERTER USING ARDUINO MICROCONTROLLER AND ITS HARMONIC ANALYSIS