A highway capacity study is necessary to carry out along the Johor Bahru-Senai Highway to determine the total volume of traffic or its capacity due to the worsening problem of traffic congestion along this highway. in general, the increased number of vehicles for the past few years as a result of rapiddevelopment along the highway corridor has frequently caused traffic congestion. Information on highway capacity is tehrefore important ini referring to the existing maximum service volume of traffic to that level of service for highway design and operational purposes. Traffic composition, physical condition and geometry of highway are taken into consideration for computing thecapacity of the Johor Bahru_Senai Highway by using the equations given inHighway Capacity Manual 1985. The current highway flow rate is obtained from the analysis of traffic volume survey conducted at few survey stations that are located along the highway. Comparisons are made between the values of the current highway flow rate and the theoretical highway flow rate and the theoretical highway capacity in order to identify the problem of traffic congestion. hence, suggestions are made in order to minimise the congestion level along the highway.