This report focuses on the pivotal role of the Internet of Things (IoT) in the development of smart cities, addressing the challenges of rapid urban growth and the need for sustainable solutions. It examines how IoT technologies offer opportunities for managing traffic, reducing pollution, and optimizing infrastructure. The research objectives include resolving city issues, highlighting the significance of IoT, and analyzing associated challenges. The scope encompasses background studies, goal setting, research questions, literature reviews, and data analysis using secondary data collection. The literature review emphasizes the contribution of IoT to a healthier environment, smart traffic management, and cost-effective street lighting. Despite numerous benefits, the report acknowledges challenges related to digital security, legislation, and policies. The report concludes that IoT is crucial in transforming urban areas, with applications in waste management, traffic control, and smart buildings. The research identifies the future scope of IoT within smart cities and the time needed to identify the significance of IoT in smart cities.