This study explores the potential of smart agriculture as a poverty reduction tool. Smart agriculture aims to increase productivity, sustainability, and profitability by incorporating cutting-edge technologies and data-driven strategies into farming methods. The study focuses on how smart agriculture can address problems faced by smallholder farmers in low-income areas, thereby helping to reduce poverty. The study assessed the effects of smart agriculture technologies like precision farming, remote sensing, and IoT devices on smallholder farmers’ productivity, income, and livelihoods through qualitative research methodology. It also conducted semi-structured interviews with farmers, agricultural experts, and policymakers. The current study examines the social, economic, and environmental elements that affect the uptake and success of smart agriculture programs in areas plagued by poverty. According to various studies, smart agriculture has great potential to reduce poverty among smallholder farmers. Precision farming techniques enable optimized resource utilization, including water, fertilizers, and pesticides, resulting in increased crop yields and improved incomes. Remote sensing technologies aid early detection of crop diseases and pest infestations, facilitating timely interventions and reducing crop losses. Also, IoT devices and data analytics enhance market access and information sharing, empowering farmers to negotiate better prices and access credit facilities. Policy interventions should focus on improving access to finance, capacity building, infrastructure development, and supportive regulatory frameworks to promote smart agriculture uptake and maximize its poverty reduction impact. Overcoming these challenges requires concerted efforts to ensure that the benefits of smart agriculture reach the most vulnerable and marginalized farming communities. By harnessing the potential of smart agriculture and fostering collaboration, this study can pave the way for sustainable and inclusive agricultural development, lifting smallholder farmers out of poverty and towards a more prosperous future.