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The Dynamic Speed Governor is a system that can be implemented effectively for an efficient and perfectly controlled traffic system. This system can limit the speed of a moving vehicle over an area where the speed has to be restricted and retained within a predetermined value. The Dynamic Speed Governor consists of mainly two parts, the Transmitter section and the Receiver section. The transmitter section is mounted on the signal board, on which the speed limit over that area is indicated. Receiver section is kept inside the vehicle. The radio frequency signal from the transmitter is transmitted and the receiver receives it. If the speed of the vehicle is greater than the speed limit proposed for that particular area, which in turn is transmitted by the transmitter section, the speed governor comes into action and restricts the driver from going beyond that rated speed. If the system detects that the speed of the vehicle has gone beyond the speed limit, a signal is generated from the dynamic speed governor circuit. This signal in turn is used to drive the mechanical part of the vehicle, which closes the fuel nozzle of the vehicle thereby restricting the vehicle from going beyond that speed. In this particular reproduction of the system, to indicate the signal produced, the signal output from the circuit is used to trigger a mono-stable multi-vibrator, which in turn sounds a buzzer.