The　research　embodied　in　this　paper　presents　a　new　approach　for　the　optimal　design　of　the　traffic　channelization　and　traffic　signal　control　in　Chinese　medium　and　small　city.　Firstly,　the　traffic　characteristic　of　intersection　is　analyzed.　Secondly,　the　structure　of　the　design　process　between　traffic　channelization　optimization　and　traffic　signal　control　optimization　is　presented;　there　are　two　phrases　of　the　design　process:　current　optimal　project　and　the　future　optimal　project.　The　optimal　project　of　the　traffic　channelization　and　traffic　signal　control　is　got　using　the　new　design　process　after　the　application,　by　the　simulation,　the　effect　is　improved　distinctly.