Bus rapid transit is an innovative, high capacity, lower cost public transit solution in metropolitan cities. Idea is to dedicate lanes for quick and efficient transport of passengers to their destinations. In the present investigation the environmental impact assessment of bus rapid transit  in Tehran metropolitan city is brought out. For this purpose bus rapid transit Lane No. 10 is investigated. The bus rapid transit Lane No.10 is about 10 km in distance that moves up and down between Azadi and Simon Bolivar Squares. About 77500 passengers using 50 buses are transited per day in lane No. 10. These 50 buses cover a distance of 9600 km/day. The results of present study showed that about 6.5 million liters of fuel is saved annually. It should be pointed out that environmental costs are also reduced for about US$ 1.7 million/yr. The overall score of environmental impact assessment stands at +10 that is indicative of Lane No. 10 compatibility with the environmental considerations.