Large Language Models excel in textual tasks but often struggle with physical-world reasoning tasks. Inspired by human cognition, where perception is fundamental to reasoning, we explore augmenting LLMs with enhanced perception abilities using Internet of Things (IoT) data and pertinent knowledge. In this work, we systematically study LLMs' capability to address IoT-sensory tasks by augmenting their perception and knowledge base, and then propose a unified framework, IoT-LLM, to enhance such capability. In IoT-LLM, we customize three steps: preprocessing IoT data into suitable formats, expanding LLMs knowledge via IoT-oriented retrieval-augmented generation and activating LLMs commonsense knowledge through chain-of-thought prompting. We design a benchmark comprising five real-world tasks with varying data types and reasoning complexities to evaluate the performance of IoT-LLM. Experimental results reveal that IoT-LLM significantly improves the performance of IoT-sensory task reasoning of LLMs, with models like GPT-4o-mini showing a 49.4% average improvement over previous methods.