The design and development of a smart monitoring and controlling system for household electrical appliances in real time has been reported in this paper. The system principally monitors electrical parameters of household appliances such as voltage and current and subsequently calculates the power consumed. The novelty of this system is the implementation of the controlling mechanism of appliances in different ways. The developed system is a low-cost and flexible in operation and thus can save electricity expense of the consumers. The prototype has been extensively tested in real-life situations and experimental results are very encouraging.