Now-a-days road congestion is a major problem due to increasing number of vehicles especially in cities.At present, video monitoring and surveillance systems have been widely used in traffic management.This project is designed in order to achieve effective traffic management. Here we use camera which is placed on the traffic pole that capture the image regularly in the traffic junction and calculates the vehicle density (approximately) in lanes using digital image processing technique. After calculating the density of vehicles, the high density lane is detected. According to that, the signal timing is allotted by using raspberry pi. This also provides facility to handle emergency vehicles automatically and efficiently by using IoT.