The idea of a smart home which is implemented in a smart network by using KNX technology is the task of final paper. The development of KNX technology has initiated the promotion of building a smart home system and creating unique standards for all KNX device manufacturers. Manufactures are united in association named KNX Association. Currently, the association has over 420 permanent members. The KNX system architecture is describing how sensors and actuators work, also advantages and the disadvantages of the KNX architecture and the types of configurations at the network topology. Transmission media is used for communication and transfer a telegram in KNX system. The signal can be transmitted via bus cable, power (line) network, radio frequency, internet protocol or by a combination of transmission media, for example radio frequency combined with a bus cable. On transmission media comes mounting of the KNX bus devices which properties are special described. After successful installation of the system and mounting components inside area, then comes device programming by using ETS software tool. It realizes a lot of possibilities in system aspects and establishing digital communication between devices in the area.