Internet of Things (IoT) technology is transforming homestay businesses in the homestay business, particularly in the Uttarakhand Himalayas. The impact, challenges, and benefits of IoT integration in homestay operations research are explored using a mixed-method approach. A quantitative survey and semi-structured interviews of 30 stakeholders, including homestay owners, local authorities, and tourism experts, were conducted for a total of 100 homestays (50 IoT-enabled and 50 traditional). The quantitative results show that energy consumption is reduced by 20% (operational costs reduced by 20%) and guest satisfaction is achieved by up to 20%. Nevertheless, qualitative results indicate that poor internet connectivity, high initial investment, and lack of skills in IoT management are barriers. Findings integration implies that although IoT adoption helps enhance the efficiency and customer experience, its success depends on infrastructure, financial feasibility, and technical support. It presents policy recommendations, training, and programs to foster IoT adoption and sustainable development in rural areas