In a world of the Internet of Things, smart home has shown a great potency and trend. A smart home is a convenient home setup where appliances and devices can be automatically controlled remotely from any internet-connected place in the world using a mobile or other networked device. Smart home has changed the way the residents interacted with their home and realised more convenience. Although this technology also has positive impact on saving energy and resources, privacy issues in it have shown to one of the biggest obstacles to the adaption of this technology. The purpose of this thesis is to study smart home users’ perceptions of smart homes and their privacy awareness and concerns. The research was conducted through interviews and followed an interpretive research paradigm and a qualitative research approach. In this study, 5 smart home owners were interviewed to investigate their reasons for purchasing IoT devices, their perceptions of smart home privacy risks, and actions to protect their privacy, as well as managing IoT devices and/or its data. The research results show that there are privacy risks existing in smart homes. Consumers’ privacy data is collected secretly, which needs to be controlled, and privacy issues have to be addressed in the near future for the smart home to be fully adopted by the society.