The Internet of Things (IoT) is transforming industries by enabling seamless communication between devices and their environments. This project introduces an AIoT-based framework to simulate real-world traffic systems. The system includes connected traffic lights and autonomous model cars that interact within a controlled environment, providing a tangible way to explore IoT networking, sensor integration, and real-time data processing. By leveraging cloud connectivity (Firebase), this setup demonstrates how IoT devices communicate, make decisions, and respond to dynamic conditions—mirroring real-world scenarios like traffic management and vehicle coordination.