Urban regions encounter ongoing issues, including traffic jams and road safety problems, which affect both economic productivity and community well-being. Tackling these challenges demands creative solutions, and this paper examines how Internet of Things (IoT) technology has the potential to transform urban traffic management. By utilizing IoT-enabled systems like smart traffic signals and dynamic message boards, the study looks into how real-time data gathering and sophisticated analytics can improve traffic flow and safety on the roads. Through a thorough review of existing literature, the research presents a fine-tuned conceptual framework for establishing IoT-based traffic management systems. The main elements of this framework comprise the installation of IoT sensors for data acquisition, the integration of communication technologies for immediate data sharing, and the application of data analytics for making well-informed decisions. Additionally, the paper addresses possible socio-economic advantages, such as decreased travel durations, lower fuel usage, reduced emissions, enhanced road safety, and an overall improvement in urban mobility. The results emphasize the significance of IoT-driven advancements in transforming urban transportation and point out possible directions for future exploration and growth in this swiftly changing domain.