With video detection technology as the core, this paper designed and implemented vehicle detection and identification in intelligent transportation system. The hardware design consisted of video capture module, video transmission module and image processing module; The software design primarily included motion detection, shadow segmentation, edge detection, feature extraction and vehicle classification. In the vehicle detection and identification algorithm, applied fusion concept and attempted to design a linear classifier with perceptive gradient descent method to identify vehicles. The experimental results validated that the methods used in this paper obtained good effect, and got a high recognition rate.