In smart home system is in existence for more than a decade to introduce the centralized control in a house over networking equipped electronic devices. Smart home system is emerged with various technologies which are growing continuously. It improves the human‟s quality of living, with so many new technologies integrates with it, through home networking. With the perspective of smart home association, Smart home system is defined as: the integration of services and technology through home networking to provide better quality of living. In our work, it reviews so many smart home technologies and applications, which are applied on smart home system after surveying various smart home research projects. The topics is gone through the definition and details of the smart home system and elements of it respectively, including smart home networks that is classified in two main types, first one is wired and second one is wireless system. This paper also proposes a home automation system based on the 8051 microcontroller with some programmable logic of priority scheduler. It provides priority to the different operations in smart home system to avoid the deadlock occurrences during the multiple inputs from sensors and human interface devices. It also offers many valuable projects summery, so it can be very helpful for whoever want to learn smart home system technologies. © Research India Publications.