Pat the roast dry with paper towels to create a better bark during smoking.
In a bowl, combine kosher salt, black pepper, garlic powder, onion powder, and smoked paprika to prepare the seasoning rub.
Rub olive oil over the prime rib, then generously apply the seasoning mixture all over the meat, ensuring even coverage.
Preheat the smoker to 225°F (107°C) or set up a charcoal grill for indirect cooking.
Soak wood chips in water for about 30 minutes, then drain and place them on the hot coals or in the smoker box.
Place the seasoned prime rib on the smoker grates, fat side up, close the lid, and smoke for approximately 4 hours until the internal temperature reaches 130°F (54°C) for medium-rare.
Remove the prime rib from the smoker and wrap it loosely in aluminum foil. Let it rest for at least 20-30 minutes to allow the juices to redistribute.
After resting, slice the prime rib against the grain into thick slices and serve immediately.