Due to the advancement in the technology, hype of connected devices (hence forth referred to as IoT) in support of automating the functionality of many domains, be it intelligent manufacturing or smart homes, have become a reality. However, with the proliferation of such connected and interconnected devices, efficiently and effectively managing networks manually becomes an impractical, if not an impossible task. This is because devices have their own obligations and prohibitions in context, and humans are not equip to maintain a bird’s-eye-view of the state. Traditionally, policies are used to address the issue, but in the IoT arena, one requires a policy framework in which the language can provide sufficient amount of expressiveness along with efficient reasoning procedures to automate the management. In this work we present our initial work into creating a scalable knowledge-based policy framework for IoT and demonstrate its applicability through a smart home application.