A routing protocol, called Fuzzy Road Situation Model Optimization Routing (FRSMOR), is proposed for Vehicular Ad-hoc NETwork (VANET) to optimize the packet forwarding strategy by using fuzzy inference to model the road situation. It aims to optimize the packet forwarding strategy and modify the transmission path dynamically according to the road situation to decrease the control overhead and improve delivery ratio. The simulation tool NS2 and TraNS are used to simulate the real vehicle mobility traces and wireless data packet transmission and the results show that FRSMOR improves the delivery ratio 15% and decrease the control overhead 20% then other routing protocols, e.g. GyTAR and RTRP. Prospectively, the FRSMOR is planning to support Intelligent Transportation Systems applications such as co-operative traffic monitoring system.