The medical advancement in recent years is addressing challenges of the dependent people like senior citizens, physically challenged, and cognitively impaired individuals by providing technical aids to promote a healthier society. The radical improvement in the digital world is trying to make their life smoother by creating a smart living environment via ambient assisted living (AAL) rather than hospitalization. In this chapter, an Edge-based AAL-IoT ecosystem is introduced with the prime objective of delivering telehealthcare to elderly and telerehabilitation to disabled individuals. The proposed framework focuses on developing smart home, an intelligent atmosphere for real-time monitoring in regard to meet the needs of independent and isolated individuals. The supporting technologies to leverage the edge computing concept, to enable scalability and reliability are also studied. A case study on proposed architecture for quarantined patient monitoring remotely in the event of epidemic or pandemic diseases is presented.