This review explores the transformative potential of sensor-driven digital twin technology in enhancing healthcare delivery within smart environments. It examines the integration of smart environments with sensor technologies, digital health capabilities, and location-based services, focusing on their impacts on healthcare objectives and outcomes. The review analyzes foundational technologies such as IoT, IoMT, AI, ML, and sensor networks that underpin smart environments. It also highlights the unique characteristics of smart homes and hospitals, emphasizing their potential to revolutionize healthcare through remote monitoring, telemedicine, and real-time data sharing. A novel solution framework leveraging sensor-driven digital twins is proposed to address healthcare needs and user requirements. The review also explores the role of location-based services in smart environments, emphasizing their potential to enhance personalized healthcare interventions and emergency response capabilities. By analyzing technical advancements in sensor technologies and digital twin applications, the review contributes valuable insights to the evolving landscape of smart environments for healthcare. It identifies opportunities and challenges associated with this emerging field and highlights the need for further research to fully realize its potential to improve healthcare delivery and patient well-being. Keywords: smart environments; smart hospitals; smart homes; digital twin; digital health; location-based services; IoT; AI; wearable health devices. The paper discusses the characteristics of smart environments, their features, and the integration of digital health technologies. It also explores the role of digital twin technology in healthcare, including patient health management and hospital optimization. The review also examines location-based services and their role in enhancing emergency responses and personalized services. The paper provides a comprehensive analysis of the integration of smart environments with healthcare technologies, highlighting the potential of digital twins and sensor-enabled systems to enhance well-being and productivity. It also discusses the challenges and opportunities in the integration of digital health technologies within smart environments. The review includes case studies of classical and contemporary smart environment systems, demonstrating their applications in healthcare and smart environments. The paper concludes with a comparative analysis of classical and contemporary smart environments, emphasizing the transformative role of digital twin technology in bridging the gap between these paradigms. The review highlights the key dimensions of differentiation between classical and contemporary systems, including connectivity, automation, data analysis, remote monitoring, user independence, real-time interaction, emergency response, integration complexity, privacy and security, user-friendliness, scalability, cost-effectiveness, and overall impacts. The review underscores the transformative potential of integrating smart environments with healthcare technologies, emphasizing the need to address challenges in technology integration and manage ethical considerations to realize this potential.This review explores the transformative potential of sensor-driven digital twin technology in enhancing healthcare delivery within smart environments. It examines the integration of smart environments with sensor technologies, digital health capabilities, and location-based services, focusing on their impacts on healthcare objectives and outcomes. The review analyzes foundational technologies such as IoT, IoMT, AI, ML, and sensor networks that underpin smart environments. It also highlights the unique characteristics of smart homes and hospitals, emphasizing their potential to revolutionize healthcare through remote monitoring, telemedicine, and real-time data sharing. A novel solution framework leveraging sensor-driven digital twins is proposed to address healthcare needs and user requirements. The review also explores the role of location-based services in smart environments, emphasizing their potential to enhance personalized healthcare interventions and emergency response capabilities. By analyzing technical advancements in sensor technologies and digital twin applications, the review contributes valuable insights to the evolving landscape of smart environments for healthcare. It identifies opportunities and challenges associated with this emerging field and highlights the need for further research to fully realize its potential to improve healthcare delivery and patient well-being. Keywords: smart environments; smart hospitals; smart homes; digital twin; digital health; location-based services; IoT; AI; wearable health devices. The paper discusses the characteristics of smart environments, their features, and the integration of digital health technologies. It also explores the role of digital twin technology in healthcare, including patient health management and hospital optimization. The review also examines location-based services and their role in enhancing emergency responses and personalized services. The paper provides a comprehensive analysis of the integration of smart environments with healthcare technologies, highlighting the potential of digital twins and sensor-enabled systems to enhance well-being and productivity. It also discusses the challenges and opportunities in the integration of digital health technologies within smart environments. The review includes case studies of classical and contemporary smart environment systems, demonstrating their applications in healthcare and smart environments. The paper concludes with a comparative analysis of classical and contemporary smart environments, emphasizing the transformative role of digital twin technology in bridging the gap between these paradigms. The review highlights the key dimensions of differentiation between classical and contemporary systems, including connectivity, automation, data analysis, remote monitoring, user independence, real-time interaction, emergency response, integration complexity, privacy and security, user-friendliness, scalability, cost-effectiveness, and overall impacts. The review underscores the transformative potential of integrating smart environments with healthcare technologies, emphasizing the need to address challenges in technology integration and manage ethical considerations to realize this potential.