Smart contracts, self-executing agreements based on blockchain technology, have gained prominence in various industries due to their automation and transparency. However, their widespread adoption hinges on robust security measures. This research paper presents an in-depth analysis of smart contract security, exploring existing best practices, auditing tools, and emerging technologies to mitigate vulnerabilities. Leveraging a qualitative research design through a literature review and secondary data analysis, the study identifies common smart contract vulnerabilities and proposes state-of-the-art security measures. Additionally, the paper discusses regulatory challenges, legal implications, and industry standards, providing key recommendations to ensure secure smart contract deployments. By understanding the evolving landscape of smart contract security, stakeholders can build more trustworthy and resilient blockchain-based applications, fostering the broader adoption of blockchain technology.