The idea of smart lighting has emerged over the years in commercial and industrial environments, with a focus on energy saving. With the advancement in technology, smart lighting can now offer opportunities in addition to energy saving to users in home environments for the provision of a comfortable atmosphere and the maintenance of user well-being. Currently, research in the smart lighting field is predominantly dedicated to energy saving in non-residential environments; meanwhile, the residential environments have not been explored. Therefore, a literature review was conducted to provide an overview of smart lighting systems’ effect on energy and well-being in the residential environment. Current research is mostly limited to designing and developing a smart lighting system in a controlled environment, with a limited evaluation of well-being and comfort. The review shows that residential smart lighting application possibilities and opportunities are not widely and thoroughly explored.