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Abstract Significant attempts have been made to make the electrical grid more intelligent and responsive to better meet customers' requirements while boosting the stability and efficiency of current power systems. Smart grid technologies, which have just recently emerged, facilitated the incorporation of demand response (DR) by introducing an information and communication backbone to the current system. The Internet of Things (IoT) has emerged as a key technology for smart energy grids. Security concerns have emerged as a major obstacle to the widespread adoption of IoT‐enabled devices because of the inherent Internet connectivity of these smart gadgets. Therefore, security is a crucial factor to address before the widespread implementation of IoT‐based devices in power grids. In this study, the framework and architecture of smart grids that are enabled by the IoT are first examined. Then, the role of IoT for DR in smart grids and different approaches adopted worldwide to make DR schemes more effective, have been discussed in detail. Finally, the authors discuss how IoT‐enabled smart grids can benefit from cutting‐edge solutions and technologies that make them more secure and resistant to cyber and physical attacks.