This paper presents a dynamic traffic management system based on RTOS for high pedestrian zones, such as hospital areas. Two infrared sensors measure the traffic density in each lane, allowing for real-time signal timing adjustment. Under typical conditions, red, yellow, and green lights have specific durations. When continuous traffic is detected, the system dynamically lengthens the Green signal for that lane and shortens the opposing Red signal to relieve congestion over five seconds. A pedestrian override switch ensures a safe crossing by interrupting the regular flow of traffic and temporarily stopping it. The when the crossing is complete, the system returns to its normal operating mode. The When the crossing is complete, the system returns to its normal operating mode. The system is implemented using important RTOS features such as semaphores, interrupts, and ISRs to manage shared resources and process pedestrian inputs without conflicts. Developed on the RTX real-time operating system kernel, it ensures reliable task handling and smooth traffic control. Its modular layout allows easy expansion to additional lanes and makes integration with emergency services straightforward. The approach enhances traffic flow, improves pedestrian safety, reduces the need for manual supervision, and responds quickly to emergency situations. Tests carried out under different traffic scenarios showed accurate timing, consistent performance, and dependable real-time operation, making it suitable for modern smart-city environments.