This paper presents an enhanced and improved Intelligent Traffic Management System (ITMS) that combines the You Only Look Once (YOLOv8) object detection algorithm with Optical Character Recognition (OCR) to improve traffic flow and safety in urban areas. This system ensures real-time classification and detection of vehicles using the YOLOv8 algorithmic approach and the OCR technology integrated with the system reads the license plates traffic signs. This adaptive and responsive traffic management solution can adjust to the traffic conditions, thus improving the flow of traffic and road safety. This study assesses the effectiveness of the implemented system through urban simulations and methodology comparisons, demonstrating and vindicating its potential for deployment in a real urban environment. The research highlights the importance of employing modern artificial intelligence and machine learning to enhance the quality of life in urban areas and address the challenges of traffic management in modern cities.