Narrative:

Approximately 5 mins after takeoff ATC advised they had lost our transponder. I looked down at the transponder whereupon I saw smoke coming from the transponder head. I initiated the memory items for cockpit smoke and declared an emergency pulled out the QRH and aom and turned back towards the airport stating our intentions to ATC. The flight attendant was informed of the situation and prepared for landing. We landed uneventfully. After safely bringing the aircraft to a complete stop checklists were completed and the engines shut down with no further incident.

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Original NASA ASRS Text

Title: SF340 FLT CREW REPORTS TRANSPONDER FAILURE WITH SMOKE AT 5000 FEET ON DEPARTURE. EMERGENCY IS DECLARED WITH SAFE RETURN TO DEPARTURE ARPT.

Narrative: APPROX 5 MINS AFTER TKOF ATC ADVISED THEY HAD LOST OUR XPONDER. I LOOKED DOWN AT THE XPONDER WHEREUPON I SAW SMOKE COMING FROM THE XPONDER HEAD. I INITIATED THE MEMORY ITEMS FOR COCKPIT SMOKE AND DECLARED AN EMER PULLED OUT THE QRH AND AOM AND TURNED BACK TOWARDS THE ARPT STATING OUR INTENTIONS TO ATC. THE FLT ATTENDANT WAS INFORMED OF THE SITUATION AND PREPARED FOR LNDG. WE LANDED UNEVENTFULLY. AFTER SAFELY BRINGING THE ACFT TO A COMPLETE STOP CHKLISTS WERE COMPLETED AND THE ENGS SHUT DOWN WITH NO FURTHER INCIDENT.

Data retrieved from NASA's ASRS site as of January 2009 and automatically converted to unabbreviated mixed upper/lowercase text. This report is for informational purposes with no guarantee of accuracy. See NASA's ASRS site for official report.