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The integration of Internet of Things (IoT) technology into the energy sector offers innovative solutions to longstanding challenges, such as electricity theft, which occurs when consumers tamper with or bypass energy meters to avoid payment. This illegal activity leads to significant financial losses for utility providers and poses safety risks to both consumers and the electrical infrastructure. In this project, we propose an IoT-based electricity theft detection system using the ESP32 microcontroller. The system employs smart meters installed at both the main line (upper meter) and user end (lower meter) to monitor electricity usage in real time. The ESP32 compares the readings from both meters, and if a significant discrepancy is found—indicating potential theft—an alert is triggered. Data is transmitted via Wi-Fi to a cloud server for analysis and visualization, and alerts are sent to a user-friendly mobile interface through the Blynk app, which users can access globally using their email login. This system reduces manual monitoring, enhances the accuracy of consumption tracking, and promotes safer, more efficient energy distribution. It provides real-time insights to both utilities and consumers, helping detect unauthorized usage, prevent losses, and improve customer service, all while supporting the broader goal of smart grid development and energy conservation.