The modern homes are automated though the internet and the home appliances are controlled. The user commands over the internet will be obtain by the wi-fi modems. The microcontroller has an interface with this modem. The system status is displayed through the LCD display, along with the system data. This is a typical IOT based Home automation system, for controlling all your home appliances. The smart home market is tacking off as IOT device price come down and the general public comes to understand the benefits of these products. And from smart home, the next logical step is smart cities, which would take the IOT to the next level. And yet, smart homes are just one small part of our daily lives that the Internet of things will transform in the coming years.