Cybersecurity honeypots are deception tools for engaging attackers and gather intelligence, but traditional low or medium-interaction honeypots often rely on static, pre-scripted interactions that can be easily identified by skilled adversaries. This Report presents LLMHoney, an SSH honeypot that leverages Large Language Models (LLMs) to generate realistic, dynamic command outputs in real time. LLMHoney integrates a dictionary-based virtual file system to handle common commands with low latency while using LLMs for novel inputs, achieving a balance between authenticity and performance. We implemented LLMHoney using open-source LLMs and evaluated it on a testbed with 138 representative Linux commands. We report comprehensive metrics including accuracy (exact-match, Cosine Similarity, Jaro-Winkler Similarity, Levenshtein Similarity and BLEU score), response latency and memory overhead. We evaluate LLMHoney using multiple LLM backends ranging from 0.36B to 3.8B parameters, including both open-source models and a proprietary model(Gemini). Our experiments compare 13 different LLM variants; results show that Gemini-2.0 and moderately-sized models Qwen2.5:1.5B and Phi3:3.8B provide the most reliable and accurate responses, with mean latencies around 3 seconds, whereas smaller models often produce incorrect or out-of-character outputs. We also discuss how LLM integration improves honeypot realism and adaptability compared to traditional honeypots, as well as challenges such as occasional hallucinated outputs and increased resource usage. Our findings demonstrate that LLM-driven honeypots are a promising approach to enhance attacker engagement and collect richer threat intelligence.