Time is precious in today’s fast moving life. The wastage of time by waiting long time for getting bus can be avoided by Smart Public Transportation System. Here a methodology based on combination of GPS and GSM/GPRS modem is discussed to help the people who utilize the public transportation for traveling. The user is provided with the information about the current location of nearest buses approaching the stop. Based on this the user may change his schedule thus saving the long waiting hours at the bus stop. Also the system will definitely control the accidents due to over speed, by alerting the driver and passengers. Also the information is recorded for future reference whenever the vehicle over speeds. A next stop indicator is installed in the bus to facilitate the passengers. The most important sections of the system are: Bus module, Bus stop module and Base station or Server module. Also people can access the nearest bus information through SMS service by sending the bus stop id to the server. In case of loss of GPS, a digital speedometer is used to check for over speeding. The project will help to reduce the long waiting hours for buses at the bus stops and detect the over speed of the buses thereby reducing the road accidents.