With the rapid rise of the population, monitoring and controlling traffic congestion has become a major concern. Increased vehicle numbers cause numerous issues, including time and fuel waste, air, and sound pollution, and even fatality from trapped emergency vehicles. The Internet of Things (IoT) and data analytics are used in this research to create a realtime traffic management system (TMS). The traffic density is measured using pressure sensors. After evaluating sensor data, the system controller uses a traffic management algorithm to set traffic signal time and uploads data to a cloud server via a Wi-Fi module. The proposed technology may foresee potential traffic congestion at the intersection. If an emergency vehicle is spotted, it will be given precedence, which means it will have a longer signal length to pass through the junction.If an emergency vehicle is spotted, it will be given precedence, which means it will have a longer signal length to pass through the junction. When a car violates a traffic signal, the system may identify it and impose a fine, which can be paid through the Traffic Wallet smartphone app. This proposed solution is costeffective, easy to install, and maintain.