To facilitate the optimization of urban traffic operations, scheduling management, ease congestion, this paper introduced the design of the multifunctional terminal system of public transportation based on GPRS/GPS technology. This system uses S3C2416 which is the ARM chip of SAMSUNG, and developed software in Embedded Linux OS. The system implements the functions such as: automatic phonetic service, real time detection, intelligent scheduling route, wireless transmission of data. And the tests proved that the performance was stable and reliable, it is served in many cities.