This project proposes an intelligent lane clearance and collision avoidance system as a prototype, which avoids delay and crashing of ERVs (EMERGENCY RESPONSE VEHICLE) and provides greatest security to the ERVs. Here ultrasonic sensor is used to continuously track for any obstacle. If the obstacle is detected then microcontroller will continuously compare the distance given by the ultrasonic sensor. If the obstacle is closer to the ERVs then a control signal is sent to the nearby vehicle and its speed is controlled by the microcontroller placed in the obstacle. The lane clearance is done based on the warning signals given to the nearby vehicles. A warning display unit and sound producing unit is placed on the dashboard of the vehicles. Here RF transmitter and receiver are used to communicate between the two microcontrollers. The Microcontroller used in the project is programmed using Embedded C language.