The self driving car uses several sensors incorporated into it and navigates through the streets using map data in real time.
Google has demonstrated its self-driving cars in California as the company is planning to introduce them for public use in next three years.
During 30-minute demonstration at Computer History Museum in Mountain View, US, it showcased the self driving car's ability to automatically drive through the city streets, navigating through the cyclists, pedestrians and traffic signs.
The self driving car uses several sensors incorporated into it and navigates through the streets using map data in real time, deciding on its own without human intervention.
During the demonstration it drove through the streets stopping at all red lights while automatically slowed for cross-walks.
The demonstration gave a sneak peek into the autonomous cars since Google conceived the project five years ago through its Google X division.
Google said it is talking to auto manufactures to how to bring its self-driving-car technology to market.
Project director Chris Urmson was quoted by Wall Street Journal as saying that a self-driving car is probably still six years away.
"We are thinking now about how to bring this car to market," Urmson added.
Urmson added that the company has not decided yet whether to design a car on its own or develop the software and operating system to be used by automakers.
"We're trying to figure that out now."
Currently Google uses Lexus cars for the test, which are mounted with cameras and radar systems, laser as well as other technologies developed by the company, which helps in navigating through the roads.