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With the increasing number of vehicles on the road, it has become difficult to properly control the flow of traffic especially in large cities like Lahore. The proposed system uses a digital camera mounted on a stepper motor to sense the traffic on the road. The decision to open the lane is done after monitoring the traffic load. The heavily loaded side is turned on for a longer time. Thus the system is intelligent because it is not using the fixed time frame. The system is also integrated with GSM, thus the signals can also be controlled with the help of mobile in case of an emergency. MATLABÂ® programming environment has been used in simulating and developing the system.