In this bachelor’s degree thesis a traffic and warning light is developed fora company with the purpose create a basis for evaluation about acquireingnew traffic lights. The company also wants to estimate if its economicallysustainable for them to have their own production of traffic and warninglights. Central in this thesis is the properties of light that has an effect onmany components of the traffic ligth such as the reflection from the sun,light intesity from the light source and the absorbation of solar light thatconverts into heat. A concept of a traffic light is developed using establishedmethods for product development and with focus on low manufacturingcosts. A prototype of a traffic light is produced and tests are performed insunlight. Conclusions are being made about how the sunlight affects thetraffic light and the perception of its light signal. The developet concepttogether with the test insights are deemed as a good basis for the company.