This study developed a damped alternating current (DAC) testing methodology, composed of an improved DAC generator and a pulse-based distributed PD-detection technique. The improved DAC generator lacks high voltage (HV) solid-state switches and is thus a cost-efficient solution for field-testing voltage generation via a direct current–alternating current (DC-AC) conversion technique. A capacitor bank is used for power supply to achieve the requirement for high instantaneous power. In addition, the use of a distributed PD detection technique enables high sensitivity and makes the method free from restrictions of the cable length. To reduce the construction cost of the distributed PD-detection system, a pulse synchronization technique is used. Attempts was made to reduce the weight based on the simulations, and a prototype with the total weight of 850kg was designed and developed for a 64/110kV power cable. Laboratory and field tests validated the effectiveness of the cost-efficient DAC testing methodology.