An online PMU-assisted Power System Parameter Calibration System (PSPCS) was recently developed and implemented at State Grid Jiangsu Electric Power Company (JEPC). PSPCS leverages high-resolution PMU data and data mining techniques to perform online screening of the EMS and Production Management System (PMS) databases for data cleaning, model validation, and parameter calibration. PSPCS calculates transmission line and generator parameters on a regular real-time basis and compares the results with databases to identify record(s) with significant discrepancy, if any. Once consistent discrepancy is observed, the system will raise a flag and further investigation will be initiated, including a novel density-based spatial clustering procedure for parameter/data calibration. A novel metric is proposed to quantify the credibility of PMU-based parameter identification. This paper discusses the proposed methodologies, challenges, as well as implementation issues identified during the development and deployment of PSPCS.