In this paper, we have discussed the problem of traffic and how to solve it using WSN and IoT. As we know IOT is the latest technology and is being used in many sectors nowadays at it very effective. As we know the problem of traffic management is increasing nowadays is big cities which causes many problems like traffic, accidents, and pollution. Management of traffic is very important and a tedious job. There have been many methods used to solve these Problems. Also, the issues like car theft have also increased nowadays, also due to high traffic ambulance also have problems in reaching the hospitals fast. In this paper, we have discussed the technique of solving this problem using IOT. There will be a sensor node and a base node the sensor node will be used to count the traffic in each lane and will send the information to the base node and the base node will take the decision of allocation of them. Also, the base node will have an RFID reader connected which will be continuously Reading for the RFID cards that will be present at the cars and compare it with the database and search for the stolen cars and ambulance and will notify after the stolen car is detected. This will help to solve the traffic management problem the theft problem and the emergency situations for the ambulance.