In order to put forward reasonable suggestions for the governance of urban traffic environment, this paper studies the game relationship among transportation management, illegal vehicles and travel residents in urban traffic. Based on the theories of group game and evolutionary game, this paper analyzes the evolution process of the decision-making of the three players in urban traffic environment governance, and depicts the evolutionary stability strategy of game problems. Three groups of representative data are selected to simulate the path of evolutionary stability strategy using MATLAB software, which verifies the existence of evolutionary stability strategy. The results show that the supervision of transportation management department plays an obvious leading role in urban traffic environment governance. However, only relying on the supervision of transportation management can not make all the players adopt the strategy of participating in the governance. It is also necessary to establish and improve the relevant systems for the investigation and punishment of illegal vehicles. We should increase the punishment for illegal operation of illegal vehicles, and increase the warning and punishment for residents who take illegal cars.