Traffic congestion today is seen as a major transport problem affecting people who live in urban area.In Malaysia, traffic congest ion problem faced by motorist, resident and commercial operations in urban area.This is because the economic growth being reflected an equally high level of car ownership per capital.Traffic congestion occurs when transport demand exceeds transport supply at a specific point in time and in a specific section of the transport system.Increasing traffic congestion has brought with a negative impact on the economy, the environment and the overall quality of life.Intelligent Transportation System (ITS) brings significant improvement in transportation system performance, reduced traffic congestion and increased safety.Intelligent Transportation Systems (ITS) encompasses the application of technology. The aim of the study is to analyse the effectiveness of Intelligent Transportation System (ITS) in order to reduce traffic congestion.The methodology of the study is by using the qualitative and qualitative method.The results show the Intelligent Transportation System (ITS) plays an important role in reducing traffic congestion in urban area