Forecasting short-term traffic flow is a key task of intelligent transportation systems, which can influence the traveler behaviors and reduce traffic congestion, fuel consumption, and accident risks. This paper proposes a fuzzy wavelet neural network (FWNN) trained by improved biogeography-based optimization (BBO) algorithm for forecasting short-term traffic flow using past traffic data. The original BBO is enhanced by the ring topology and Powell's method to advance the exploration capability and increase the convergence speed. Our presented approach combines the strengths of fuzzy logic, wavelet transform, neural network, and the heuristic algorithm to detect the trends and patterns of transportation data and thus has been successfully applied to transport forecasting. Other different forecasting methods, including ANN-based model, FWNN-based model, and WNN-based model, are also developed to validate the proposed approach. In order to make the comparisons across different methods, the performance evaluation is based on root-mean-squared error (RMSE), mean absolute percentage error (MAPE), and correlation coefficient (R). The performance indexes show that the FWNN model achieves lower RMSE and MAPE, as well as higher R, indicating that the FWNN model is a better predictor.