This study aims to implement an Internet of Things (IoT) and multifunctional sensor system in the electromagnetic induction practicum to enhance students’ conceptual understanding and analytical skills. The research employed a quasi-experimental design with pre-test and post-test models involving 26 students enrolled in the Physics Laboratory Design and Production course. The practicum utilized real-time data acquisition, allowing students to directly observe relationships among magnetic flux variations, induced electromotive force (EMF), and current direction through a digital interface. Results revealed a significant increase in students’ conceptual understanding, with mean scores rising from 59.8% to 81.6% (p < 0.001). Moreover, 84.7% of participants achieved Good to Very Good understanding levels. Questionnaire data indicated high levels of motivation and satisfaction with the IoT integration, particularly regarding interactivity, rapid data analysis, and real-time visualization of physical phenomena. The implementation of IoT and multifunction sensors effectively improved the quality of physics laboratory learning, strengthened analytical thinking skills, and fostered contextual, technology-oriented learning experiences relevant to modern scientific education.