With the rapid increase of global population, the power load increases rapidly, and the electrical equipment such as generator, transformer, and power line in the power system is an important basis for production and life. Its safe operation is of great significance because it is related to people’s economic development and life stability. In recent years, with the rapid development of Internet of Things technology, the Internet of Things and electrical equipment safety early warning are combined to use their respective advantages to provide a new way for electrical equipment monitoring and early warning system. Through a variety of key technologies of the Internet of Things, such as sensor technology, network communication technology, and cloud computing technology, data, information exchange, and communication between electrical equipment and Internet technology are carried out according to the agreed protocol, and the safety of the operation status of electrical equipment is monitored in real time, so as to prevent power equipment failure and other problems. Based on this background, this paper studies the Internet of Things technology and electrical equipment monitoring and early warning system and analyzes its three-tier network architecture mode from the Internet of Things technology, namely, perception layer, network layer, and application layer. The combination of cloud computing and edge computing is studied and analyzed to provide theoretical support for the research of electrical equipment monitoring and safety early warning system. The wireless sensor network equipment is also installed on the electrical equipment through the Internet of Things technology to transmit data to the base station, so as to monitor whether the equipment operates safely. The monitoring and early warning system of wireless sensor system based on Internet of Things is given through case experiment. This system realizes relevant intelligent application services, which can not only ensure the stability of information transportation but also real-time monitoring of electrical equipment, early warning, shorten troubleshooting time, reduce the workload of power station staff, and achieve the functions of safety early warning, emergency command, and control. It is of great significance to the monitoring and early warning system of electrical equipment.