At present, China’s traffic signal control machine has a low level of intelligence and a single control strategy. It cannot make corresponding control according to the actual traffic situation, and its ability to direct traffic flow in a reasonable and orderly manner is low. In order to understand the urban rail transit signal and control system, we analyzed the requirements of the train dispatching subsystem, designed the overall architecture of the system from the perspective of function realization and architecture, and constructed the wireless sensor network of the system, which is the best for other experts. In this paper, combined with the research of related technologies of the Internet of Things (IoT), an intelligent traffic signal control machine is designed, and the traffic signal control effects under different algorithms are compared, and the relevant rail transit conditions are statistically studied. Studies have proved that sensors based on IoT technology can effectively improve the intensity and control effect of urban rail transit signals. Compared with other algorithm technologies, the overall score of the sensor algorithm is higher than other algorithms, and the ratio is about 30% higher. This article realizes the maintenance function of various data on the system simulation operation terminal, and builds the overall framework of the system; realize the main functions of the train dispatching operation terminal, including the realization of train dispatching functions such as station map, manual route arrangement, automatic route triggering, station deduction and station jump settings, and log report generation. This shows that the sensor algorithm under the IoT has a great promotion effect on the urban rail transit signal and control system.