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IoT-based wearable devices are significantly contributing to personalized and pervasive modern healthcare. Traditional healthcare systems are handicapped by several factors, including shortages of physicians, nurses, healthcare devices, hospital beds, healthcare cost, etc. Conventional therapy is carried out either at a hospital or at home by certified therapists which is not affordable for many in developing nations. In this research work, we present IoT-based monitoring and an evaluation of key parameters and indicators of a wearable device used during the rehabilitation process in stroke patients’ hand therapy which can be operated by the users at home without the need for therapists. Sensors along with a controller board are used for signal acquisition, processing, and monitoring. The efficiency of therapy can be increased through real-time follow-up and feedback from therapists. Three different control methods are proposed and studied: smartphone-based speech, smartphone-based touch, and Internet of Things (IoT)-based dashboard. In addition, four different architectures, including: therapist therapy wearable, dual therapy wearable, user therapy wearable, and multiuser therapy wearable architectures are discussed. A rehabilitation therapy-based case study using the proposed wearable device with multiple volunteers was conducted. Therapists can remotely operate the device and train the users. Users can benefit and save on costs without the need to visit hospitals or therapy centers or hire therapists. Based on the results of the experiments with volunteers, we can confidently say that the proposed IoT-based wearable device can enhance the quality of life and well-being of the users.