Time is a necessary key for everyone’s life in traffic management because it plays a major role every day. In peak hours have heavy traffic, many intersections occur and make difficult situations in emergencies across the road. Most of the system works with fixed timing and without any priority. It is controlled by using RFID technology and FSM logic with FPGA. FSM logic utilizes a set of well-defined states and transitions to respond to corresponding sensor input from real-time traffic conditions. The system consists of various sensors, including density identification of traffic flow monitors and emergency vehicle detection, to gather input data for efficient decision making. Emergency vehicle management is designed and developed by using RFID with FSM states. RFID tags help to read the unique Id from emergency according to traffic signs. Overall, the proposed system ensures that efficient traffic flow, flexible and suitable for smart city applications.