The smart home is gradually captivating worldwide and provides the best services to human life. It wipes traditional houses by turning them into smart homes; nowadays, numerous energy-efficient devices lead to optimal energy exploitation. It enhances the inhabitant's lifestyle, safety, and comfort since it is suitable for users of diverse incomes and ages. It is essential to exploit the technology to develop energy-efficient smart homes. The design and implementation of energy-efficient smart homes are proposed in this research work. It is a proposed model that can control home appliances, monitor energy usage and send low priority devices in switch OFF mode to save energy. It is a system that uses a combination of a central controller, sensors, modules and PA-PSM algorithm also proposed by this research work. The PIR sensor locates the human within the home and brings the nearby appliance in active mode; however, the rest switch OFF mode, the LDR (light dependent resistor) to sense the intensity of the light to decide if the light is needed else stays in switch OFF mode. The Arduino manages all the sensors, modules, home appliances including scheduling, and energy consumption of individual home appliances. The system automates the process and accepts the commands from end-user through mobile applications to use home appliances. It is a novel approach that has several experiments that help to reduce 20.34% of energy consumption.