Abstract: The on-board energy storages in PEVs (plug-in electric vehicles) make a new challenge and opportunity for the sustainable and distributed energy supply study. An energy management strategy of the smart home was proposed based on the dynamic programming method for PEVs energy storage. The power flow and the PEV batteries were modeled to adapt the specific home energy consumption structure. Constrained by the home energy demand and PEV charging power request, the electricity minimum consumption problem was formulated as the dynamic programming paradigm based on the time-varying electricity price and time-varying home power demand. Simulation results show the economy efficiency of the proposed method in different house power demand and the different drive condition. The daily total electric cost of smart home with PEV energy storage is 50% less than that of non-PEV case in summer weekdays, and 27% in winter weekdays.