Introduction This study aimed to determine the capacity of two-lane suburban roads and its effect on level of service. Materials and methods Traffic data used in this study prepared from statistics available at the site of road transport Organization and has been tried that the roads are selected from the various regions of level terrain, rolling terrain and mountainous. Because of advantage of the neural network approach than the classic methods, it is selected for determining of capacity. Results As a result, the 5-7-1 structure was selected as the best structure to determine capacity. The method which is presented in HCM 2000 manual was used to determine the level of service. This method determines the level of service based on percent time spent following (PTSF) and average travel speed (ATS). Conclusions The results show that level of service based on average travel speed is better than the level of service based on percent time spent following and this is indicative that drivers move with higher average speed than prevailing condition and it cause to decrease safety.