This study undertakes a systematic literature review, framed by eight research questions, and an exploration into the state-of-the-art concerning smart home innovations for care of older adults, ethical, security, and privacy considerations in smart home deployment, integration of technology, user interaction and experience, and smart home design and accessibility. The review evaluates the role of smart home technologies (SHTs) in enhancing the lives of older adults, focusing on their cost-effectiveness, ease of use, and overall utility. The inquiry aims to outline both the advantages these technologies offer in supporting care for older adults and the obstacles that impede their widespread adoption. Throughout the investigation, 58 studies were analyzed, selected for their relevance to the discourse on smart home applications in care for older adults. This selection came from a search of literature published between 2010 and 2023, ensuring an up-to-date understanding of the field. The findings highlight the potential of SHTs to improve various aspects of daily living for older adults, including safety, health monitoring, and social interaction. However, the research also identifies several challenges, including the high costs associated with these technologies, their complex nature, and ethical concerns surrounding privacy and autonomy. To address these challenges, the study presents recommendations to increase the accessibility and user-friendliness of SHTs for older adults. Among these, educational initiatives for older adults are emphasized as a strategy to improve technology acceptance, along with suggestions for design optimizations in wearable devices to enhance comfort and adaptability. The implications of this study are significant, offering insights for researchers, practitioners, developers, and policymakers engaged in creating and implementing smart home solutions for care of older adults. By offering an understanding of both the opportunities and barriers associated with SHTs, this research supports future efforts to create more inclusive, practical, and supportive environments for aging populations.