Effective vehicle tracking and monitoring has become increasingly important in recent years due to growing security concerns and the need for real-time fleet management. This paper suggests a real-time vehicle tracking and monitoring system that utilizes smart key technology and the Internet of Things (IoT) to increase security, convenience, and operational efficiency. The system offers precise vehicle location tracking and secure access control by integrating RFID, GPS, and GSM technologies. The smart key’s RFID authentication design ensures that only authorized users can start the vehicle. Important vehicle parameters like speed, fuel level, and engine health are also continuously monitored by IoT-based sensors. They use a Wi-Fi or GSM module to transmit real-time data to a cloud-based platform. Users can access this data via a web or mobile application, enabling theft detection alerts, remote vehicle management, and geofencing. This state-of-the-art system improves fleet management, vehicle security, and driver safety while reducing operational risks and unauthorized use. The proposed approach offers a scalable and cost-effective solution for private vehicle owners, logistics companies, and rental agencies.