Ambient Assisted Living (AAL) is a recent communication technology, which makes an intelligent object in the environment to support the elderly people in living independently. An Ambient Intelligence is a technology and it aims to build a safe environment around the assisted people. Nowadays, the population of elderly people in living alone keeps on increasing. Hence, it becomes a major impact in our society. The AAL based Elderly people monitoring system requires the efficient and cost effective solution. The proposed system performs three operations such as Elderly people monitoring, activity recognition and health status prediction using Support Vector Machine (SVM) Algorithm. The sensor’s (Accelerometer, Temperature sensor, Pulse rate sensor) are connected to the Arduino micro controller and the generated data is stored in cloud storage (ThingSpeak). The health status prediction part introduces SVM algorithm and it classifies the data from ThingSpeak. Finally, the proposed system improves the prediction accuracy and also provides the cost effective solution of this problem. © RJPT All right reserved.