Concerning the phenomenon that common parking service could not satisfy the increasing demand of the private vehicle owners, an intelligent parking guidance system based on ZigBee network and geomagnetic sensors was designed. Real-time vehicle position or related traffic information was collected by geomagnetic sensors around parking lots and updated to center sever via ZigBee network. On the other hand, out-door Liquid Crystal Display (LCD) screens controlled by center sever displayed information of available parking places. In this paper, guidance strategy was divided into 4 levels, which could provide clear and effective information to drivers. The experimental results prove that the distance detection accuracy of geomagnetic sensors was within 0.4m, and the lowest loss packet rate of the wireless network in the range of 150m is 0%. This system can possibly provide solution for better parking service in intelligent cities.