By the dusk of the 21st century, both developed & developing countries will witness a tremendous rise in automobile sales. Everybody will want to travel as fast as possible and reduce traffic waiting time. The objective of this research is to provide efficient algorithms and sound scientific principles for accurate traffic density estimations even in the busiest traffic hours. The methodologies discussed in this paper include the use of Infrared, Ultrasonic, Pressure & Piezoelectric sensors, and also Inductive loop detectors. These methodologies are further used to control real-time traffic lighting systems based on threshold-based decision algorithms. Further, Digital Image Processing techniques are analyzed which involve camera installation for congestion assessment and traffic control. Therefore, proper application of these methodologies will lead to early traffic detection with immediate disaster preventive measures that will ensure better passage for vehicles.