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This research presents the design and development of an IoT-Based Smart Library Management System using RFID technology to automate the process of book borrowing and returning. Traditional library systems often face challenges such as manual record-keeping, misplaced books, and time-consuming verification. To address these issues, the proposed system integrates RFID readers, ESP32 microcontrollers, and a cloud-connected Python dashboard that records each transaction automatically. When a student scans their RFID card, the system verifies their identity against an SQLite database, updates book records in real time, and displays confirmation on a 16x2 LCD screen. The solution enhances efficiency, accuracy, and security in library operations by reducing human error and operational time. The project also demonstrates strong potential for commercialization and scalability within educational institutions seeking to modernize their library systems through IoT integration.