A microscopic traffic flow parameter called headway can be used to represent driver behaviour, safety evaluations, capacity estimates, and level of service assessments. Although time headway analysis in mixed and heterogeneous traffic conditions has been the subject of numerous research, but the impact of time headway on the level of service has not received nearly as much attention. In order to manage road network and traffic effectively, it is crucial to describe the variation or impact of time headway on capacity and the level of service. The present study deals with a comprehensive analysis of headway distribution patterns including best-fit distribution found using statistical software. The Kolmogorov–Smirnov test has been carried out for this investigation. Results show that at LOS-C and LOS-D, log-normal is the best-fitted distribution. The best-fit headway distribution for LOS-B is achieved in general extreme value. The study concludes from the cumulative distribution of vehicles with respect to headway, 40% of vehicles in LOS-B have a headway of three seconds or less, 55% of vehicles in LOS-C have a headway of three seconds or less, and 70% of vehicles in LOS-D have a headway of three seconds or less.