Energy storage systems have become a crucial component of smart grids, enabling the efficient integration of renewable energy sources, and reducing peak demand. Smart energy storage systems (SESS) are considered one of the key technologies for the future power system, and battery management systems (BMS) play a critical role in optimizing their performance. This paper provides a comprehensive review of SESS and BMS, focusing on the determination of efficient battery management systems. First, the paper presents an overview of SESS and their importance in modern power systems. The different types of SESS, including electrochemical, thermal, and mechanical energy storage systems, are discussed along with their advantages and limitations. Then, the paper presents a detailed description of the BMS and its functions, such as state-of-charge estimation, cell balancing, and thermal management. Next, the paper reviews the recent developments in BMS design and implementation, including hardware and software advancements. The importance of accurate modeling and simulation of battery systems is also discussed, as it can help optimize the performance and extend the lifetime of batteries. The paper also highlights the challenges associated with BMS, such as safety concerns, and discusses potential solutions. Finally, the paper concludes with a summary of the current state of the art in SESS and BMS and provides recommendations for future research. These include the need for further development of advanced BMS technologies, including artificial intelligence and machine learning, to improve battery performance, safety, and reliability. Additionally, the paper suggests the importance of standardization and interoperability of BMS systems to enable seamless integration into the grid. Overall, this paper provides a valuable resource for researchers and practitioners interested in SESS and BMS design and optimization.