Due to the variety of household electric devices and different power consumption habits of consumers at present, it is a challenge to identify various electric appliances without any presetting. This paper proposed the smart appliance management system for recognizing of electric appliances in home network, which can measure the power consumption of household appliances through a current sensing device. The characteristics and categories of related electric appliances are established, and this system could search the corresponding cluster data and eliminates noise for recognition functionality and error detection mechanism of electric appliances by applying the current clustering algorithm. At the same time, this system integrates household appliance control network services to control them based on users' power consumption plans, thus realizing a bidirectional monitoring service. In practical tests, the system reached a recognition rate of 95%, and could successfully control general household appliances in home network.