Numerous benefits result from implementing the Internet of Things (IoT) in Operation Theater (OT) monitoring because it enhances surgical efficiency while delivering precise care with maximum patient safety. The existing OT monitoring approach depends on manual operations, sporadic vital sign evaluations, and human involvement, which produces time delays for complication detection and workflow issues. The implementation of IoT for surgical environments enables real-time patient observation and automated anesthesia functions alongside AI-powered risk evaluation tools and intelligent OT framework optimization for improved surgery management and better post-operative assistance. The research examines the difference between standard operating theater monitoring systems and describes the strengths and difficulties of both methods presented during the analysis. This research examines how IoT technology devices (including wearable healthcare monitors, innovative anesthesiology systems and environmental detectors, and mobile patient observing equipment) strengthen medical procedures, minimize operator mistakes during operations, and improve post-operative care. This report shows how AI predictive analytics creates a preventive system that optimizes hospital resource performance. The study reveals that traditional OT monitoring practices continue to be crucial. Still, existing IoT applications enable better surgery efficiency alongside risk reduction while maintaining patient monitoring during their entire care period. The analysis shows that OT monitoring facilitated by IoT technology stands essential for developing intelligent healthcare facilities, better patient results, and new medical care systems.