This paper presents the development of PHP and MySQL based online examination system with power failure handling and drop box capability. To the best of author's knowledge these shortcomings were not properly addressed in the previous systems developed in PHP and MySQL. Power failure is an important factor that directly affects the efficiency of the online examination system in most of the developing countries of the world and made the systems unreliable. Therefore, the proposed system resumed from same status where it was stopped due to power failure. The second shortcoming that is addressed in this system is of rigidness of online examination system for students, by introducing drop box capability, to put ambiguous questions to the drop box and attempt these whenever student wants from drop box. These capabilities make the proposed online examination system user-friendly, reliable and natural.