Short-term freeway traffic speed prediction is essential to improving mobility and roadway safety. It has been a challenging and unresolved issue. Traffic speed prediction can be applied to enhance the intelligent freeway traffic management and control for applications such as operational and regulation planning. For example, with more reliable traffic speed prediction, the advanced traveler information system can provide travelers with predictive travel time information and optimal routing, which allows them to arrange their schedules accordingly. Moreover, traffic managers can use the predicted information to deploy various traffic management strategies to increase system efficiency. In this paper, a hybrid empirical mode decomposition (EMD) and autoregressive integrated moving average (ARIMA) (or EMD-ARIMA) approach was developed to predict the short-term traffic speed on freeways. In general, there were three stages in the hybrid EMD-ARIMA forecasting framework. The first was the EMD stage, which decomposed the freeway traffic speed time series data into a number of intrinsic mode function (IMF) components and a residue. The second stage was to find the appropriate ARIMA model for each IMF and residue and then make predictions on the basis of the appropriate ARIMA model. The third stage was to combine the prediction results of each IMF and residue to make the predictions. The experimental results indicated that the proposed hybrid EMD-ARIMA framework was capable of predicting short-term freeway traffic speed with high accuracy.