Internet of Things (IoT) links the real world objects to the virtual world, and enables every time, everywhere connectivity for anything that can be switched ON/OFF. It constitutes to a world where physical things and human beings, as well as virtual data and environments, interact with each other. Traffic in urban areas is increasing day by day which leads to most critical issues of traffic management. Traffic congestion often causes loss of time, time delay, missed opportunities, etc. To overcome these problems proposed system uses the RFID technology where RFID tag is attached to each vehicle and as and when vehicle reach the traffic junction the RFID reader will read those RFID tags. Depending upon the count of vehicles green passage will be set dynamically and the proposed system provides special privileges for emergency vehicles like police vehicle, ambulance, VIP vehicles, etc. RFID also enforces law against stolen vehicles.68 also provides facility in case if the vehicle is stolen. The owner of the car can register the stolen vehicle information with the central database if the tag read by the reader and registered tag maps then the controller will send the message to the owner of the vehicle and also concerned authority. The person who has stolen the vehicle will be punished rule break. The web portal is used to show the records and charts of the traffic management in terms of stolen vehicle, emergency etc.