Internet of Things (IoT) applied in healthcare system has a huge potential to improve patients’ quality of life. Representing network of devices embedded with electronics and sensors, IoT enables constant monitoring of vital body functions, tracking of physical activities of a person and aids rehab physical therapy. Such an IoT-based system would allow standalone recovery process, minimizing the need for dedicated medical personnel and could be used in both hospital and home conditions. In this paper, we present a telerehabilitation system that uses wearable muscle sensor and Microsoft Kinect to create interactive personalized physical therapy that can be carried out at home. Early experiments and results of pilot implementation validate the feasibility and effectiveness of the proposed IoT-enabled telerehabilitation system.