The black and white video, directed by Olivia Rose, involves an all-male cast of local residents in Walsall to show the impact of 'the stereotypes we are bombarded with'.
The 20-year-old singer said she drew her inspiration for the song from Walsall and the video features men and boys at Walsall Magistrates Court, nearby flats, barbers, homes and parks, as well as some well-known local musicians.
WATCH the Blue Lights video here:
Birmingham-born artists Mike Skinner, Jaykae and Mist all appear in the film.
Blue Lights is her debut single and was released in 2016, with the new powerful video created ahead of the global release of her debut album Lost and Found on June 8.
Smith has spent three years writing the songs that make up the album - beginning the process as a 17-year-old.
She said: "I wanted to capture men/boys of Walsall and Birmingham from all different walks of life doing everyday activities to show that the stereotypes we are bombarded with are misleading and, ultimately, harmful.
"I chose Walsall as the setting for the video as that is where I am from and where I drew my inspiration from when writing the song."
Smith won the Brit Award for Critics' Choice and has collaborated with Drake, Stormzy, and Kali Uchis, as well as producer Predita.
She is known to have a close relationship with Drake, who was captured by starstruck staff as he visited a Co-op in Broadway, Walsall, while touring in February last year.
It followed his two sell-out performances at the Barclaycard Arena in Birmingham.