Rural health care is a major issue in the present scenario of epidemics and widespread disease. the main problem in rural india is that there are not enough clinics available for the middle and low income groups for proper diagnosis and health care consequently people know about their diseases only at the last stage. this makes prevention or cure difficult. to improve the prevailing situation, we designed a portable and wearable wrist- watch -like instrument called e-diagnoser, which is a wearable and portable human physiological parameter monitoring device. we have successfully developed the prototypes. this research won the financial funding of iedc, india. so in this paper, the prototype development of innovative product e-diagnoser: an advanced low cost patient monitoring watch is described. in the device, there are various ports which are specified for a particular parameter measurement. the system is designed to measure various parameters like temperature, blood pressure, respiratory rate, patient falling detection, acceleration rate, e.c.g and respiration rate. the operation of our system is that when the patient needs to measure a particular parameter, he/she wears the system and makes the system function to measure that particular parameter. this system can be programmed in such a way that a particular range of values can be set and if that particular preset reading is crossed then a call or a message will be sent to the mobile number of the doctor or to a close relative. it is important in case of emergency. also there are so many additional features like clock which can be used to set the time for medicinal alarm etc.the system has internal memory too. one of the greatest advantages is that it can measure all the parameters simultaneously. and it can be interfaced with the computer so that if a person in the remote location can communicate to the doctor through internet. and the power used is battery power. one of the great challenges while designing the product is that it’s accuracy, compactness, and integration of all parameters in the wrist worn unit. existing patient monitoring devices have been used extensively in many areas of health care from the hospital icu to care at home. although commercialized patient monitors provide highly reliable data and many facilities they are limited from user’s perspective. they are in convenient i.e,1)they are bulky and need to be connected to several electrodes to measure various vital bio signals 2)they have poor mobility and restricted usage in hospital and indoors 3)they are relatively expensive to be used all the time and hard for poor people who cannot afford them .due to these limitations, existing patient monitoring systems are unsuitable when monitoring has to be accomplished over periods of several weeks or months, as in the case of elderly and patients at risk of potentially critical events. so an integrated portable and wearable system would benefit the elderly and patients in critical life. the cost of this watch is expected to be below rs.6000. further the cost can be reduced in mass production. we are sure that our system will help the poor in rural areas to keep good health. we expect our system to play a major role in india’s course of being a developed country by the year 2020.