Persistent energy demand, along with a strong emphasis on sustainability, has accelerated the adoption of renewable energy sources, plug-in electric vehicles, and energy storage devices. The diversity of energy sources within the system creates an urgent need for a sophisticated EMS that ensures proper energy management. At the same time, the high level of uncertainty surrounding renewable energy, the skepticism associated with plug-in electric vehicles, volatile energy prices, and varying energy needs make maintaining a stable power grid extremely challenging. The EMS also has a crucial role in energy marketing, including energy sharing and trade, load supervision, efficient energy utilization, and reliable operational power system management. This paper provides an in-depth review of the literature concerning the design, objectives, commercial benefits, and challenges associated with the implementation of such systems. Additionally, it analyzes key stakeholders and their roles in these processes. The analysis further explores the behavior of distributed energy resources and evaluates programs such as demand response, demand-side management, and power quality management, which are essential components of EMS implementation. Solutions to the challenges posed by uncertainty analysis are briefly presented, particularly through a comparison of the primary optimization methods applicable to EMS functions within system constraints. Finally, this paper focuses on recommendations for advancing EMS technology to develop smarter and more efficient systems that gave the best result less cost & emissions for homes, buildings, industries, electric vehicles, and larger communities of energy management systems.