Commercial and industrial loads are relatively lighter than residential loads and have become lighter over the years as distribution transformer loads are affected by the rate of urbanization. When geared to provide distribution infrastructure that will supply electrical power in growing cities, it often struggles to meet the demand for power due to urbanization. This has compounded the issue of distribution transformers and their tendency to overheat. The impact between the residential load and the distribution transformer temperature in monitoring is approaching through the lens of the Internet of Things (IoT), which is the focus of this study. The distribution transformers’ optimum performance is essential for maximizing distribution network function as well as ensuring electric supply to residential areas. Fluctuations in residential loads also have an impact in changing the temperature of the transformers and this may, in the process, pose operational challenges as well as cause equipment failures. When many distribution transformers mounted with IoT temperature sensors are connected to a centralized management platform, temperature information can be captured and processed in real time. Today, it is possible to identify temperature anomalies that can speak about the presence of problems in the form of, for instance, overload or insulation damage in advance. Besides the understanding of the consumer demand profile, the utility can use the temperature data alongside the domestic load profile for the anticipation of the peak demand periods. Some of the outcomes observed when IoT technology is utilized for temperature monitoring include enhanced operating efficiency, reduced downtime, and enhanced product reliability.