Abstract: Model-Based Testing is the automatic generation of efficient test procedures using models of system requirements and specified functionality. Model-based regression testing is an important activity that ensures the reliability of evolving software [1]. One of the major issues in this type of testing is the optimal selection of test-cases to test the affected portion of the software. Model-based selective regression testing promises reduction in cost and labour by selecting a subset of the test suite corresponding to the modifications after system evolution. Identification of such changes in modification and selection of test cases is very difficult task. In this paper, MBRT (Model Based Regression Testing) tool has been developed, which is a java base testing tool used for generation, reduction of test cases and also classify the test cases into obsolete, reusable and re-testable test cases which results in reduction in time and cost. In this paper use of class diagram and state machine diagram has been made for presenting the idea of regression testing and also use of flow graph to generate the test cases.