A smart home interaction system is presented. It is built on a multi-modal, multithreaded conversational dialog engine. The system provides a natural language user interface for the control of household devices, appliances or household functionality. The smart home automation agent can receive input from users through sensing devices such as a smart phone, a tablet computer or a laptop computer. Users interact with the system from within the household or from remote locations. The smart home system can receive input from sensors or any other machines with which it is interfaced. The system employs interaction guide rules for processing reaction to both user and sensor input and driving the conversational interactions that result from such input. The system adaptively learns based on both user and sensor input and can learn the preferences and practices of its users.