Efficient transportation could be an important issue to be considered in public transport system [PTS]. To make a city smart and digitalised this is a small contribution. Smart public transportation system [SPTS] using IOT shows that how IOT can be applied to PTS and present the navigational facilities for urban bus passengers. SPTS provides three novel information services for bus passengers: 1) Micro-navigation [MN] 2) Crowd-aware route recommendation [CARR] and 3) Bus arrival time estimation [BATE]. MN gives fine grained information or guidance about passenger’s bus journey by recognizing and tracking the bus a person boarded. CARR collects the crowd levels of different routes and predicts and suggests the best and less crowded routes to passengers. BATE collects bus locations and predicts the estimated arrival time to passenger’s location with shared route details so that BATE will be more accurate. SPTS provides an efficient and reliable PTS which is simple, attractive and user friendly.