Incorporating the Internet of Things (IoT) in educational environments offers a transformative opportunity to improve students’ critical thinking skills. This chapter delves into how IoT technology aids in problem-solving, decision-making, collaborative learning, and data analysis within education. By utilizing real-time data and interactive scenarios, students are actively involved in hands-on exploration, addressing issues such as managing energy usage in buildings and optimizing city traffic flow. Simulated decision-making settings and industry-related challenges enhance students’ decision-making ability, while discussions on ethical considerations enrich their problem-solving methods. Collaborative IoT projects promote critical thinking through project-based learning, interdisciplinary cooperation, and teamwork. Furthermore, collaborative teamwork is fostered through data sharing and participation in open-source initiatives that encourage a culture of continuous learning and critical thinking. The chapter underscores the significance of data analysis and visualization in offering real-time feedback, customizing learning paths, and facilitating hypothesis testing to connect theoretical knowledge with practical implementation. Looking forward, it explores advantages like improved learning and global collaboration networks alongside obstacles such as ethical dilemmas and technological gaps. Teachers, decision-makers, and involved parties are urged to focus on professional growth, ethical standards, teamwork, technological support, and research to maximize the advantages of IoT technology in enhancing critical thinking abilities in education.