This paper describes the design, construction, and testing of a high-performance solar-powered LED street lighting system within the Smart Street Project, designed specifically for sustainable urban development in Bangladesh. The system is designed to save energy and cut power costs by using solar energy to power LED streetlights. The system includes Light Dependent Resistors (LDRs) for ambient light sensing and spectral content discrimination. It employs infrared (IR) motion detection based on dynamic modulation of light intensity in response to nearby movement. The control center is an Arduino Pro Mini micro-controller that reads the street lights’ inputs and controls their outputs. The prototype was built and tested successfully, proving that the system can automatically control street lighting in accordance with environmental inputs. The results demonstrate very significant energy savings, as the system dims the light when there is no activity and switches off automatically at dawn. It also effectively extended the service life of LEDs by starting and stopping them as required. Real-time energy management based on solar panel voltage and battery status enabled energy performance monitoring. The coupling of a motion sensor with dimming achieved the best energy savings and minimal required light to work. The successful development of the prototype has opened up further possibilities for using solar-based energy savers in other urban areas with inferior electricity supply.