In present scenario power quality issues and reliability are the challenges for the service providers and end users. The advancements in recent technologies like Internet of Things (IoT) provide good solutions for these challenges and strengthening the smart grid. Smart Meter Technology (SMT) and Advanced metering Infrastructure technology (AMIT) enables two way communication between service providers and end users there by exposing the power transactions between them in effective way. SMT and AMIT are discussed throughout this literature This paper discusses the role and feasibility of SMT in improving power quality and maintaining reliability in IoT enabled smart grid. At first we discuss in detail about SMT, wireless communication, routing algorithms enabling AMIT and then literature focusing on power quality and reliability in IoT enabling smart grid.