This paper presents a comprehensive review that incorporate context-aware computing, with a focus on their application in smart home environments within semi-rural areas of Malaysia. As smart home technologies become increasingly accessible, there is a growing need to personalize services based on users’ contextual information—such as location, activity, preferences, time, environmental conditions, and occupant physical status —to improve usability, energy efficiency, and occupant well-being. We explored the evolution of context-aware systems, analyzing current models, data collection strategies, and context modelling techniques relevant to smart homes. Special attention is given to challenges unique to semi-rural Malaysian settings, including inconsistent internet connectivity, cultural acceptance, infrastructure limitations, and readiness to embrace. Through a rigorous literature review, this paper identifies gaps in current approaches, particularly in multi-user environments, cold-start scenarios, and the integration of real-time sensor data. This work aims to provide a foundation for researchers and developers to design and implement contextually intelligent recommendation frameworks that are both technically feasible and culturally sensitive in underrepresented regions.