PURPOSES : Although signalized intersections have been considered the best way to control traffic volume in urban areas for several decades, roundabouts are currently being discussed as an alternative way to control traffic volume, especially when traffic is light. Because a roundabout’s efficiency depends on the load geometry as well as the traffic volume, design guidelines for roundabouts are recommended only if the incoming traffic volume is very low. It is rare to substitute a roundabout for an existing signalized intersection in urban areas. This study aims to estimate the benefits from the transformation of an existing signalized intersection into a roundabout in an urban area. When there is a more moderate volume of traffic, roundabouts can be effectively used by optimizing signals located at an approaching roadway. METHODS : The methodologies of this paper are as follows: First, a signalized intersection was analyzed to determine the traffic characteristics. Second, the signalized intersection was transformed into a roundabout using VISSIM microscopic traffic simulation. Then, we estimated and analyzed the effects and the performance of the roundabout. In addition, we adjusted a method to improve the benefits of the transformation via the optimization of signals located at an approaching road to control the incoming traffic volume. RESULTS : The results of this research are as follows: The signal-optimized roundabout improved delays compared with the signalized intersection during the morning peak hour, non-peak hour, and evening peak hour by 1.78%, 12.45%, and 12.72%, respectively. CONCLUSIONS : According to the simulation results of each scenarios, the signal-optimized roundabout had less delay time than the signalized intersection. If optimized signal control algorithms are installed in roundabouts in the future, this will lead to more efficient traffic management.