To cope with the ever growing problem of traffic management and parking management this paper proposes an advance solution for managing and monitoring free parking space and automated guidance for user to park the car. It aims at implementing smarter and better parking guidance mechanism which reduces significantly vehicle travel time and parking time. In this system all the Infrared sensor nodes (IR sensor) sense the status of the car space and accordingly transfer the information to the AVR controller. Accordingly AVR sensor sense the status of car parking space and displays the information on the LED screen for the user, thereby reducing the time for the driver to find vacant empty space and almost reduce the chances of entering into the unusual space which might lead into the traffic jam.