This paper deals with smart windows, double glazing units where one pane consists of a high-performance heat reflective glass & the other coated with low-emissivity (low-e) coating. This combination of glazing provides optimum energy efficiency & a high level of daylight transmission with minimal reflectance. A study is made on the benefits derived from smart window done on a hypothetical 20-storey building. This encompasses a description of its quantitative impact on cooling load, energy consumption & energy savings achieved as compared with other forms of glazing. Following this, a detailed life cycle costing is done to determine the economic benefits attained from this type of glazing. The reduction of atmospheric pollutants as a result of using smart window is also analysed, & future application of glazing in hot & humid climates is discussed. In conclusion, it is observed that the smart window meets the technical and economic targets set, thus making it a viable long-term investment for high-rise commercial buildings.