"SmartMonitor" is an intelligent security system based on image analysis that combines the advantages of alarm, video surveillance and home automation systems. The system is a complete solution that automatically reacts to every learned situation in a pre-specified way and has various applications, e.g., home and surrounding protection against unauthorized intrusion, crime detection or supervision over ill persons. The software is based on well-known and proven methods and algorithms for visual content analysis (VCA) that were appropriately modified and adopted to fit specific needs and create a video processing model which consists of foreground region detection and localization, candidate object extraction, object classification and tracking. In this paper, the "SmartMonitor" system is presented along with its architecture, employed methods and algorithms, and object analysis approach. Some experimental results on system operation are also provided. In the paper, focus is put on one of the aforementioned functionalities of the system, namely supervision over ill persons.