Preheat oven to 350 degrees. Line a rimmed baking sheet with foil. Set aside.
Cut bacon strips into thirds, wrap each Lil smokie with a 1/3 slice of bacon.
Push a toothpick through bacon and smokies near the overlap to hold the bacon in place.
In a resealable bag, add brown sugar and optional chili powder.
Add the bacon wrapped smokies.
Shake bag gently to coat each bacon wrapped smokies.
Arrange them on the foil lined baking sheet, arrange so they are not touching each other.
Bake for 25 to 30 minutes or until bacon is browned and crispy.
Serve with your favorite barbecue sauce.