Mirai malware represents a significant threat to Internet of Things (IoT) security, demonstrating its ability to compromise devices through common vulnerabilities such as weak passwords and insecure authentication protocols. This study investigated the functionality and impacts of Mirai through controlled attack simulations, focusing particularly on its ability to orchestrate distributed denial-of-service (DDoS) attacks. The results revealed that Mirai can effectively coordinate networks of compromised devices to launch massive attacks, severely impacting the availability and stability of online services. The operational impact assessment indicated that Mirai-targeted DDoS attacks can saturate critical network resources, resulting in prolonged outages and significant financial losses for affected organizations. Current defense strategies, such as network segmentation and security patching, are crucial but insufficient in the face of Mirai’s rapid evolution and adaptability. In addition, the importance of ongoing cybersecurity education and cross-industry collaboration to mitigate the risks associated with IoT botnets is highlighted. In conclusion, this study provides a comprehensive view of the cyber threats represented by Mirai, highlighting the urgency of strengthening cyber defenses and developing innovative solutions to protect critical infrastructure and sensitive data in the IoT ecosystem.