In an era of rapid urbanization, achieving sustainable development in transportation and traffic management faces a substantial challenge, particularly in developing nations with infrastructure limitations and economic constraints. In Jordan, transportation and traffic systems encounter significant obstacles related to infrastructure, safety, congestion, and environmental impacts. This paper examines how Internet of Things (IoT) technologies can advance sustainable transportation and traffic management practices and address these pressing challenges. Through a review of the literature on IoT applications in transportation and traffic management and the challenges facing this sector in Jordan, this study proposes a conceptual framework for implementing IoT-based solutions within Jordan’s transportation and traffic systems. The proposed framework is designed to promote smart mobility, reduce congestion, and lessen environmental impacts, thereby supporting sustainable development in this sector.