In today’s traffic signal system the lights (Red,Green,Yellow) have got fixed timings and so signals remain on for longer time when not needed and are not sufficiently on when density is more. To overcome this problem a system is to be designed that will vary the signal timings based on density at signal. Also, another major problem encountered is violation of traffic rules, signal breaking being one of them. So, system is designed to detect the vehicle which breaks the signal and it will send the code number of the vehicle to server unit for further processing through SMS using GSM techniques. The goal of our project is to make a wireless smart traffic signal and anti-signal breaking-system.After the successful completion of the project these features can be added to present traffic signal system to become a completely automatic. This report is description of smart signalling and signal breaking identifier system including information about GSM, RFID system and of the different modules being used for controlling.