The SCG hosts the fourth and final Test between Australia and India, less than two months after Phillip Hughes was struck by a bouncer at the venue before dying from the injuries sustained.
Four current Test players " David Warner, Nathan Lyon, Brad Haddin and Shane Watson " were in the field on that day in November.
Smith praised his team for the way they handled the first Test in Adelaide but understands a return to Sydney will be arguably more difficult.
"I think the boys in Adelaide did a terrific job to get themselves up for that Test match so quickly after the tragic incident," he told a media conference on Monday.
"And I think just coming back to the place of which it happened, I thought it was going to be particularly tough for the boys, particularly the ones who were out there that day.
"It's going to be a tough Test match for all of those involved and everyone else as well, so hopefully we can hold ourselves together and end this series well."
Australia have made only one change to their XI, with Mitchell Starc replacing the injured Mitchell Johnson.
Smith backed Starc to deliver in Sydney, despite the left-armer's struggles in the second Test in Brisbane.
"I'm sure he's looking forward to playing out here in front of his home crowd at the SCG," Smith said.
"I think having one left-hander is good for us. I think the way we've seen Mitch go back in the Big Bash, he's looked like he's bowled exceptionally quick, so we're looking forward for hopefully some of the same that he's produced in the Big Bash this week.
"I think if he sustains that pace for long periods and he can keep that kind of pace up and sustain it throughout the whole day he's going to be an amazing bowler."