The idea of this thesis was the design, development and testing of smart home using an Android smartphone and smartwatch. The project is called BlueHouse because "Blue" is associated with Bluetooth technology that is the holder of all communications between all devices, and "House" meaning house or home. Thus, the "house driven by Bluetooth technology." Hardware, on which are mounted three consumers in the form of two bulbs and fan working at 12 V DC and KTY81-110 temperature sensor, is managed by Arduino Uno board with ATmega328P that by JY-MCU HC-06 Bluetooth module achieves serial connection with Android application. Android application sends instructions to turn on or off connected appliances, Arduino program detects the instruction based on which, through digital output pins, it triggers the corresponding relay which has a switch role and consequently closes the circuit and turns on a certain consumer. Within the temperature sensor, resistance rises as the temperature rises, the Arduino measures voltage state on analog input pin and the program calculates the temperature in degrees Celsius and the same is logged every two seconds on the Bluetooth serial port. Application for Samsung Gear 2 smartwatch which is driven by Tizen-wearable operating system is made in Tizen IDE development environment. The smart watch connects to the smartphone also via Bluetooth, but through Samsung Accessory Protocol (SAP) connection. It is necessary to configure a service on the Android side, create a service profile, as well as to include the necessary libraries to establish a connection. The application on the smartwatch is actually wearable-side widget and an extension of the original Android application. When you open the application on the watch, a simple interface that consists of buttons to connect and disconnect from the Android side is shown. Below are the names of the appliances and the ON and OFF buttons for every appliance which send a single instruction to the Android application, and based on them, Android simulates human press on a particular button sending an identical instruction to Arduino as it was controlled by a smartphone directly. Similarly, Android application sends the temperature received from the Arduino on the watch, and the received state appears at the bottom of the smartwatch screen.