This paper studies the use of a Bluetooth enabled mobile phone as a controlling device in a smart environment. Main focus for the work is partitioning of the functionality and the UI handling between a mobile phone and a smart appliance. There seems to be no single right solution for the partitioning of functions. Instead, there are so many case dependent characteristics that the partitioning of functions should be designed in a case-specific fashion. The results of this work give the basis for designing the partitioning. Keywords Smart Environment, Distributed UI, Software Architecture, UI Management System