The invention provides an urban traffic system and method. The urban traffic system at least comprising an urban traffic management control center, an information nervous system, a rail station equipment system, an auxiliary station equipment system, a rail vehicle cluster, a passenger management system and a running guaranteeing system is established in a city firstly. By the adoption of the urban traffic system, rail trains capable of running directly to a destination from a departure place are automatically grouped through the system for passengers with the same departure place, the same destination and the same get-on time point according to taking applications sent by the passengers in advance. Trains for passengers with different time, different departure places and different destinations are under the unified real-time control of the urban traffic management control center to designedly, cooperatively, accurately and efficiently run on the optimal running routes planned through a computer, the purpose that each passenger directly reaches the destination from the departure place is achieved, the highest carrying efficiency is achieved as well, and the purpose of the urban traffic system is achieved. The urban traffic system can be used as a main carrying means for urban traffic to be widely applied to construction of each city.