Nowadays, due to increase of population in cities there is a need to makea smart city. The Smart City includes major changes in city life like publictransportation, development of roads, electricity in houses, streets, commercial placesand water supply.The current public transportation like city bus should be upgraded. Thecity bus at the movement is not trackable for public but only for the bus authorities.The people have to wait for bus at bus stops for long period or till the bus comes.Currently for city Pune India, the public transport PMPML(Pune MahanagarParivahak Mahamandal Limited) has declared a timetable for buses in bus stops. TheTimetable has the information like bus number, and where the bus is going from thespecific stop and the frequency of bus. If some passenger waits for long time it musthave happened that bus fails during an ongoing journey. So, at present in PMPML theconductor calls the depot and informs them about the failure of bus and in this caseconductor wait for the bus which is coming towards there direction of destination andthen the passengers form the failed bus are then deported the coming bus afterverification of ticket which is lengthy process.So, for this reason we are going to develop a smart bus by using embeddedsystem. We are going to track the bus using GPS to get the exact location of bus. Wehave installed a microcontroller Arduino UNO in bus which is connected with GPSwith wire and it is also connected with IR sensors on both IN and Out doors withBluetooth. The Arduino UNO is connected with the app of conductor which isandroid based. The whole set of bus or the embedded system is connected to thecloud server. And there is an Android Application for public or Bus user which will help theto track bus and get the exact location of bus, the vacant seats in Bus and will alsocontain a small database of PMPML timetable. The Timetable will contain BusNumber, Names of Bus stops will also help to search source and destination and givethe information about which bus to catch. The application will also tell the estimatedarrival time(ETA) of bus to the user and calculating it by using Euclidean formula.ETA is calculated when user is standing on bus stop and the nearest bus comingtowards the bus stops at which user is standing. Further we are going to set afrequency for buses so that some trips might be saved. It will be done by using Kmeansclustering Algorithm.This paper presents a system for public transportation i.e. PMPML for Pune citywhich is successful in producing an intended or desired solution or result.