The Internet of Thigs is mainly considered as the key technology tools which enables in connecting many devices through the use of internet, this has enabled in overall exchange of data and information, support in receiving the instruction and enable in acting upon it in an effective manner. With the advent of IoT, many devices are connected to the internet which enable in assisting the individuals to operate the devise virtually, share data and program required actions. This study is focused in understanding the key determinants of creating smart homes by applying natural language processing (NLP) through IoT. The major determinants considered are Integrating voice understanding into devices; Ability to control the devices remotely and support in reducing the energy bills. The present study focuses in sourcing the data from both sources and information are collected through the usage of questionnaire and the information are quantitatively applied through 5-point Likert scale. The researchers use extensive data analysis tools using AMOS for understanding the path diagram using structural equation model.