The rapid evolution of smart grid technologies has transformed the traditional energy landscape, resulting in the enhanced efficiency, reliability, and sustainability of energy transport. This comprehensive review delves into the latest developments in smart grid technologies, analyzing their impact on modern power systems and their respective end users, both industrial and residential. This paper outlines the smart grids' fundamental principles and components, encompassing advanced metering infrastructure, communication networks, and intelligent control systems. It explores the integration of renewable energy sources and energy storage within smart grids, assessing their role in optimizing energy generation, distribution, and consumption and minimizing the downtime of power plants. In addition, emphasis is placed on deploying machine learning algorithms and artificial intelligence in smart grid management, showcasing their ability to forecast demand, detect anomalies, and optimize grid operations in real time. It also discusses the real-time accurate monitoring of parameters with the help of smart technologies applied in the grid, which enhances the safety of manpower and the protection of the environment, assets, or equipment to prevent system damage. Furthermore, this paper addresses the challenges associated with the widespread adoption of smart grid technologies, including cybersecurity risks, interoperability issues, and standardized protocols. Finally, research gaps and future directions and opportunities are presented to motivate future researchers who want to venture into this field.