The new Internet of Things (IoT) technology has the potential to generate breakthrough opportunities in real-life applications. The merger of IoT with other technologies like context-aware computing, big data, artificial intelligence, machine learning, etc. will give rise to new services that will improve the quality of life. The article discusses the emergence of context-aware computing and some use cases of context-aware IoT applications. The study presented in this article focuses on some crucial and open problems in the practical implementation of context-aware IoT applications.