An EEG-based brain-computer system for automating home appliances is proposed in this study. Brain-computer interface (BCI) system provides direct pathway between human brain and external computing resources or external devices. The system translates thought into action without using muscles through a number of electrodes attached to the user's scalp. The BCI technology can be used by disabled people to improve their independence and maximize their capabilities at home. In this paper, a novel BCI system was developed to control home appliances from a dedicated Graphical User Interface (GUI). The system is structured with six units: EMOTIV EPOC headset, personal computer, Flyport module, quad band GSM/GPRS communication module, LinkSprite JPEG Colour camera, and PIC-P40 board. EMOTIV EPOC headset detects and records neuronal electrical activities that reflect user's intent from different locations on the scalp. Those activities are then sent to the computer to extract specific signal features. Those features are then translated into commands to operate all appliances at home. The proposed system has been implemented, constructed, and tested. Experimental results demonstrates the feasibility of our proposed BCI system in controlling home appliances based on the user's physiological states.