A simple cost‐effective microprocessor‐based correlator is described which can be used for Gaussian as well as non‐Gaussian light sources. Error calculations are presented to show that there is no significant improvement in accuracy by adopting 4‐bit word length in preference to 3‐bit word length. The instrument can also be used in Raman and Raleigh scattering experiments. A few experimental results are presented bringing out the importance of correlation averaging in S/N enhancement. Some autocorrelograms for fluctuations in the scattered light from polystyrene spheres suspended in water are also presented. The instrument can sample 1500 points and calculate 85 correlations in each scan. All the parameters such as number of samples, number of correlations, number of scans, and the sampling time are user programmable.