Internet of Things (IoT) is a platform that makes a device smart such that every day communication becomes more informative. A Smart Transportation system basically consists of three components which include smart roads, smart vehicles and a smart parking system. Smart roads are used to describe roads that use sensors and IoT technology which makes driving safer and greener. Smart parking system involves an automated system model that can assist the drivers in selecting the suitable parking spot for them. The data that the system collects will be sent for some analysis. It provides real time information to drivers about various aspects of transportation like weather conditions, traffic scenario, road safety, parking space, and many other things. A well-built Smart Transportation system reduces the risk of accidents, improves safety, increases capacity, reduces fuel consumption, and enhances overall comfort and performance for drivers. Our chapter deals with the in-depth discussion of these various aspects of a smart transportation system enabled with IoT technology.