Swift population growth and rising demand for energy in the 21st century have resulted in considerable efforts to make the electrical grid more intelligent and responsive to accommodate consumers’ needs better while enhancing the reliability and efficiency of modern power systems. Internet of Things (IoT) has appeared as one of the enabling technologies for smart energy grids by delivering abundant cutting-edge solutions in various domains, including critical infrastructures. As IoT-enabled devices continue to flourish, one of the major challenges is security issues, since IoT devices are connected through the Internet, thus making the smart grids vulnerable to a diverse range of cyberattacks. Given the possible cascading consequences of shutting down a power system, a cyberattack on a smart grid would have disastrous implications for the stability of all grid-connected infrastructures. Most of the gadgets in our homes, workplaces, hospitals, and on trains require electricity to run. Therefore, the entire grid is subject to cyberattacks when a single device is hacked. Such attacks on power supplies may bring entire cities to a standstill, resulting in massive economic losses. As a result, security is an important element to address before the large-scale deployment of IoT-based devices in energy systems. In this report, first, we review the architecture and infrastructure of IoT-enabled smart grids; then, we focus on major challenges and security issues regarding their implementation. Lastly, as the main outcome of this study, we highlight the advanced solutions and technologies that can help IoT-enabled smart grids be more resilient and secure in overcoming existing cyber and physical attacks. In this regard, in the future, the broad implementation of cutting-edge secure and data transmission systems based on blockchain techniques is necessary to safeguard the entire electrical grid against cyber-physical adversaries.