Fatal Road accidents can be easily avoided by understanding the psychological state of drivers. Majority of road accidents occur during night driving due to drowsiness state of vehicle drivers (Subject). This paper provides Eye Blink Monitoring System (EBM) that alerts the subject during state of drowsiness. An embedded system based on psychological state of Subject by monitoring eye movements and head movements are useful in warning drivers during initial sleep cycle phase of drowsiness. The physiological sleep state analysis of subject can be determined by monitoring subjects eye-blink rate using an IR sensor and head movement using an accelerometer. A normal eye blink rate has no effect on the output of the system. However, if subject is in extreme state of sleep-cycle, then IR sensor receives abnormal eye blinking rate & an alarm is initiated to wake the subject. An Internet of Things (IOT) enabled sensors are used to transmit the entire data collected by sensors over a smart grid network for quick response team to take actions under emergency conditions.