The increasing complexity and scale of the Internet of Things (IoT) have made security a critical concern. This paper presents a novel Large Language Model (LLM)-based framework for comprehensive threat detection and prevention in IoT environments. The system integrates lightweight LLMs fine-tuned on IoT-specific datasets (IoT-23, TON_IoT) for real-time anomaly detection and automated, context-aware mitigation strategies optimized for resource-constrained devices. A modular Docker-based deployment enables scalable and reproducible evaluation across diverse network conditions. Experimental results in simulated IoT environments demonstrate significant improvements in detection accuracy, response latency, and resource efficiency over traditional security methods. The proposed framework highlights the potential of LLM-driven, autonomous security solutions for future IoT ecosystems.