Abstract-The paper deals with the application of the state and parameter estimation techniques in the area of traffic control. The most important properties of the traffic system are described and the model of the traffic system, based on the traffic flow conservation principle, is presented. Various estimation and identification techniques are briefly introduced and applied for three types of roads and micro-regions, namely for city ring road, peripheral road, and city centre. Performance of estimation techniques is validated, using the derived models on real and synthetic data coming from Prague, with respect to accuracy and complexity.