SMART irrigation systems (SIS) are valuable tools for scheduling irrigation and determining plant water requirements to optimize water use. In Egypt, SIS utilize cutting-edge technologies to enhance food security and improve water management. This study evaluates the impact of SIS on the energy productivity (EP) and water productivity (WP) of bell peppers grown under greenhouses in North Sinai. A split-plot design with three replicates was employed to compare SIS with traditional irrigation techniques (TIT) during the winter seasons of 2023–2024 and 2024–2025. The study examines water application, consumptive water use, irrigation efficiency, crop yield, WP, EP, and economic performance while testing surface drip irrigation at a depth of 0 cm (D0) and subsurface drip irrigation at depths of 10 cm (D10), 20 cm (D20), and 30 cm (D30). Compared to TIT, SIS with D10 reduced water application by 27.1% and 27.4% in the first and second seasons, respectively. Additionally, under SIS,total yield increased by 36.9% and 34.0% compared to D0 (control). WP improved by 32.4% and 31.8% in both seasons, while EP exceeded that of TIT by 34.8% and 34.5%. The highest net return (NR) was observed at D10 in SIS, reaching 28,623 L.E. in 2023–2024 and 43,472 L.E. in 2024–2025. Overall, in a recent study, Smart Irrigation Systems (SIS) enhanced crop yields, conserved water, and improved irrigation efficiency in greenhouse bell pepper cultivation. Their adaptability supports sustainable agriculture, making them suitable for various crops and climates. Future research integrating SIS with precision fertigation and renewable energy could further enhance both efficiency and sustainability