This paper explores the impact of various rainfall conditions on traffic flow and speed at selected location in Terengganu and Johor using data collected on two-lane highway. The study aims to quantify the effect of rainfall on average volume, capacity, mean speed, free-flow speed and speed at capacity. This study is important to come out with recommendation for managing traffic under rainfall condition. Traffic data were generated using automatic traffic counters for about three months during the monsoon season. Rainfall data were obtained from nearest surface rain gauge station. Detailed vehicular information logged by the counters were retrieved and processed into dry and various rainfall conditions. Only daylight traffic data have been used in this paper. The effect of rain on traffic flow and speed for each condition were then analysed separately and compared. The results indicated that average volumes shows no pronounce effect under rainfall condition compared to those under dry condition. Other parameters, however, show a decrease under rainfall condition. Capacity dropped by 2-32%, mean speed, free-flow speed and speed at capacity reduced by 3-14%, 1-14% and 3-17%, respectively. The paper recommends that findings from the study can be incorporated with variable message sign, local radio and television, and variable speed limit sign which should help traffic management to provide safer and more proactive driving experiences to the road user. The paper concluded that rainfall irrespective of their intensities have impact on traffic flow and speed except average volume.