One of the most important parts of a smart city is its traffic management system. Road congestion is a common problem in major cities due to the increasing number of people living there and the ease with which they can move about. This article presents a smart traffic management system that utilises the Internet of Things (IoT) to address many road traffic management concerns and assist authorities with effective planning. An algorithm is developed to effectively handle different traffic scenarios, and a hybrid method is used to optimise road traffic flow. The system operates the traffic lights after receiving data on the density of traffic from a) cameras and b) sensors. In order to reduce traffic congestion, another AI-based system is used to foretell future traffic densities. Furthermore, radio frequency identification tags are also used to provide higher priority during traffic congestion to emergency vehicles like fire brigade vehicles and ambulances. Additionally, smoke detectors are integrated into this system to identify the occurrence of a fire on the road. An optimised traffic flow and the ability to link nearby rescue departments to a central server are two features that the prototype features to prove the efficacy of the suggested traffic management system. Even better, it gleans valuable data displayed graphically, which could aid authorities with future road planning.