With　the　rapid　growth　of　vehicles　scale　in　China,　the　development　of　public　transportation　has　become　an　effective　way　of　controlling　urban　traffic　problems.　However,　the　continuous　occurrence　of　public　traffic　accidents　has　caused　widespread　concern　in　China.　Hence,　how　to　efficiently　monitor　the　security　status　in　the　bus　is　becoming　a　hot　research　field.　In　this　paper,　the　H.264　video　compression　standard　and　real-time　streaming　protocol　(RTSP)　are　introduced　to　achieve　real-time　transmission　of　surveillance　video.　Besides,　a　real-time　bus　monitoring　system　combining　with　4G　transmission,　GPS,　FPGA　and　network　camera　technologies　is　designed　to　achieve　real-time　bus　video　monitoring,　positioning,　and　emergence　handling.　The　system　is　actually　tested　in　two　Beijing　bus　lines,　and　is　proved　by　practice　that　the　system　can　effectively　improve　the　efficiency　of　bus　monitoring　and　positioning　with　features　such　as　short　video　set-up　time,　clear　bus　video,　and　accurate　bus　positioning.