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The goal of the ambient intelligence system is not only to enhance the way people communicate with the surrounding environment but also to advance safety measures and enrich human lives. In this paper, we introduce an integrated ambient intelligence system (IAmIS) to perceive the presence of people, identify them, determine their locations, and provide suitable interaction with them. The proposed framework can be applied in various application domains such as a smart house, authorisation, surveillance, crime prevention, and many others. The proposed system has five components: body detection and tracking, face recognition, controller, monitor system, and interaction modules. The system deploys RGB cameras and Kinect depth sensors to monitor human activity. The developed system is designed to be fast and reliable for indoor environments. The proposed IAmIS can interact directly with the environment or communicate with humans acting on the environment. Thus, the system behaves as an intelligent agent. The system has been deployed in our research lab and can recognise lab members and guests to the lab as well as track their movements and have interactions with them depending upon their identity and location within the lab.