Smith, who has been vying for a starting job, was arrested Sunday morning and charged with DUI. Tuesday was the top-ranked Crimson Tide's first practice since then.
Saban said in a statement afterward that he "will handle it appropriately once I've had a chance to review the information." He's scheduled to speak to reporters after practice.
Smith played in all 13 games as a freshman during last season's national championship run, and his role on the nation's top defense increased late in the year.
Starting middle linebacker Trey DePriest also returned after Saban suspended him last week for violating team rules, saying the suspension would be a short one.