A closed loop auto control system has been developed and implemented at the Pakistan Research Reactor-2 (PARR-2). For interfacing of the site signals with a computer, a data acquisition card was employed. The system utilizes nine signals and, on their basis, carries out continuous on-line analysis, maintaining safe operation. On-line reactivity measurement is included in this software. Also, it generates control signals for keeping the reactor at the desired power level in auto-mode round-the-clock without human intervention. In case of abnormal conditions for either power or temperature or radiation level, alarms are initiated and if their levels reach beyond prescribed safe operation regime, automatic shutdown sequence is initiated. The control system has been thoroughly tested for various postulated scenarios. The test results have been in good agreement with the expected response.