Emotion recognition system identifies human emotion like happiness, sadness, anger, disgust and fear via various modalities such as facial expression analysis, voice intonation, physiological signals such as the brains electroencephalogram (EEG) and hearts electrocardiogram (ECG). The emotion recognition system allows machines to recognized human emotions and reacts to it. It offers broad areas of application including smart home applications. This work presented physiological based ERS that applied for smart homes control that adjusted lighting and airconditioning setting to help maintaining occupant's positive emotion.