Context awareness is one of the important fields in ubiquitous computing. Smart Home, a specific instance of ubiquitous computing, provides every family with opportunities to enjoy the power of hi-tech home living. Discovering that relationship among user, activity and context data in home environment is semantic, therefore, we apply ontology to model these relationships and then reason them as the semantic information. In this paper, we present the realization of smart home's context-aware system based on ontology. We discuss the current challenges in realizing the ontology context base. These challenges can be listed as collecting context information from heterogeneous sources, such as devices, agents, sensors into ontology, ontology management, ontology querying, and the issue related to environment database explosion.