Bus use of urban roadways and past bus-capacity experience are reviewed. Field studies and bus simulation analyses were used to validate, update, and extend existing bus stop and berth capacity procedures. A 60% coefficient of dwell time variation was used to obtain new estimates of likely failure, and the maximum achievable capacity was based on a 25% failure rate. Capacity adjustment factors for skip-stop operation and right turns are derived. Service planning implications are identified. Bus lane capacities depend on how frequently the stops are placed, how long the buses dwell at each stop, traffic conditions and control systems along the bus lane or route, and whether buses can pass and overtake each other. Keeping dwell times and dwell-time variations to a minimum, providing multiple berth stops, and establishing skip-stop patterns will increase the bus and passenger capacity of bus lanes.