The population of Port Blair has steadily grown at about 6.5% per annum but it fell down to 0.62% per annum in the last decade. However the population of vehicles has increased at an average of 12% per annum and road infrastructure has not been able to keep pace with the increasing vehicular growth. The mismatch between supply and demand of infrastructure apart from improper traffic regulation has culminated in increasing traffic related problems such as congestion, accidents, air pollution etc. in the city of Port Blair. Considering the above issues, the present study has been formulated with an objective to work out a traffic management plan to ease the existing traffic problems in Port Blair and to optimize the use of existing infrastructure focusing on short term remedial measures to improve traffic conditions. Based on conducted traffic studies namely traffic volume studies at Intersections and Mid-blocks, Pedestrians Studies, Parking Studies and Speed and Delay Studies, short term solutions are recommended which include geometric design of 28 identified junctions and design of traffic circulation plans at three locations in Port Blair city for smooth movement of traffic at the city center and market areas. Different traffic management schemes were also tested with microscopic simulation models using VISSIM 5.40 software. Further the recommendations are also proposed to widen the identified sections of the road network, restriction of commercial vehicle movements, design of parking facilities and pedestrian facilities along with traffic control devices namely signals, signages and markings.