This paper describes Equal Embedded Algorithm (EEA) for solving Economic Dispatch (ED) problem with generator constraints. The proposed algorithm is formulated based on the conventional numerical techniques such as Interpolation and Muller method. The proposed algorithm involves selection of incremental fuel cost (lambda) values, then the output powers of generating units are obtained in terms of lambda by Newton forward interpolation and finally the evaluation of optimal lambda is done by the Muller method at required power demand from the power balance equation. The proposed algorithm has been tested on a power system having 6,15 and 40 generating units and the results of the proposed method are compared in terms of solution quality, convergence characteristics and computation time with the conventional lambda iterative method. From the case studies, it is observed that the proposed algorithm provides qualitative solution with less computational time.