In this work, an IoT system with edge computing capability is proposed, facilitating the postoperative surveillance of patients who have undergone knee surgery. The main objective is to reliably identify whether a set of orthopedic rehabilitation exercises is executed correctly, which is critical since it is often necessary to supervise patients during the rehabilitation period so as to avoid injuries or long recovery periods. The proposed system leverages the Internet of Things (IoT) paradigm in combination with deep learning and edge computing to classify the extension–flexion movement of one’s knee via embedded machine learning (ML) classification algorithms. The contribution of the proposed work is multilayered, as this paper proposes a system tackling the challenges at the embedded system level, algorithmic level, and user-friendliness level considering a performance evaluation, including the metrics at the power consumption level, delay level, and throughput requirement level, as well as its accuracy and reliability. Furthermore, as an outcome of this work, a dataset of labeled knee movements is freely available to the research community with no limitations. It also provides real-time movement detection with an accuracy reaching 100%, which is achieved with an ML model trained to fit a low-cost off-the-shelf Bluetooth Low Energy platform. The proposed edge computing approach allows predictions to be performed on device rather than solely relying on a Cloud service. This yields critical benefits in terms of wireless bandwidth and power conservation, drastically enhancing device autonomy while delivering reduced event detection latency. In particular, the “on device” implementation is able to yield a drastic 99.9% wireless data transfer reduction, a critical 39% prediction delay reduction, and a valuable 17% increase in the event prediction rate considering a reference period of 60 s. Finally, enhanced privacy comprises another significant benefit from the implemented edge computing ML model, as sensitive data can be processed on site and only events or predictions are shared with medical personnel.