A switch controlling system and method of smart appliances are provided. A beacon device is movably located in a space and outputs a beacon signal. Switch devices are located respectively at different positions in the space. The switch device entering within a distance range from the beacon device receives the beacon signal from the beacon device and outputs a distance determined signal according to the beacon signal. A central control device obtains spatial information of the space to establish a spatial database. The central control device looks up the spatial information from the spatial database according to the distance determined signal. The central control device determines a position of the beacon device relative to the electronic devices in the space according to the spatial information. The central control device selectively switches the switch devices to control the electronic devices based on the position of the beacon device.