This project studies the combination of the Internet of Things (IoT) with artificial intelligence (AI) to increase the functionality and flexibility of smart prosthetic limbs. The work takes a mixed-method approach, combining simulation-based modeling and real-world experimental testing, to design a prosthetic system that leverages advanced AI algorithms and IoT technology. Key techniques incorporate the use of machine learning for adaptive control and real-time data processing using IoT sensors. The results reveal considerable improvements in prosthetic limb performance, including increased responsiveness, user experience, and system dependability. Findings reveal that the combination of IoT and AI not only enhances prosthesis control but also provides a more customized and intuitive user interface. The study concluded that this new technique has the potential to transform prosthetic technology, presenting a roadmap for future research into further refinement and broader implementation of smart prostheses. Future work will focus on improving the AI algorithms, increasing real-world testing, and finding potential applications in customized healthcare.