The increasing number of Internet of Things (IoT) devices in different areas has led to worries about their susceptibility to security risks because of their limited resources. This study aims to improve IoT security by utilizing a streamlined key management system based on the PRESENT block cipher algorithm. The proposed method is compared to TinyIKE and Elliptic Curve Diffie-Hellman (ECDH) using key parameters like Encryption Time, Decryption Time, Storage Usage, Energy Consumption, and Key Entropy. The paper’s introduction contextualizes the importance of securing IoT devices, highlighting the difficulties caused by their restricted computational capabilities. The research proposes using the PRESENT algorithm for key management systems because of its lightweight characteristics and compatibility with resource-limited environments. The proposed method will be thoroughly analyzed across different parameters to evaluate its performance in comparison to current solutions. The research shows that the suggested lightweight key management scheme using PRESENT is more effective than TinyIKE and ECDH in Encryption Time, Decryption Time, Storage Usage, Energy Consumption, and Key Entropy. The results demonstrate the effectiveness of the suggested approach in meeting the particular security needs of IoT devices with limited resources. This research enhances IoT security by proposing a lightweight key management method that efficiently tackles the issues caused by resource-limited devices. The comparative analysis demonstrates that the proposed method outperforms others, indicating its potential as an effective solution for securing IoT ecosystems in practical scenarios.