This paper explores the application of the Internet of Things (IoT) in the development of a smart waste monitoring and management system. The system utilises a range of sensors to accurately monitor the fill levels of waste bins, enabling the timely emptying of only the full bins and the adjusting of the bin sizes according to actual needs. The Raspberry Pi is used as the central unit for sensor integration, after which the collected data is sent to a server for further processing. A web application was developed to serve as the centralised platform for waste management, containing the logic and intelligence framework of the system. The objectives of this paper include the development and testing of a system prototype, the design of IoT component connectivity and the assessment of the effectiveness of algorithms for optimising waste collection routes. The system was tested through simulations in controlled conditions and the results indicate that it has the potential to reduce the time and costs associated with waste collection as well as to achieve various environmental benefits, including the reduction of CO2 emissions. The focus was on optimising operations, improving efficiency and demonstrating the system’s potential in cities and urban areas. In conclusion, this paper highlights the crucial role of IoT solutions in transforming waste management, paving the way for further innovations and system improvements.