In order to improve the reliability of bus service and reduce the bus bunching phenomenon, this paper presents an optimized method for time control point selection of a bus route based on bus GPS data. First, three basic principles of control points setting were given, which mainly consider position of control points, travel time between control points, and distance between control points. Several factors were selected from the principle of control point setting for quantitative analysis, and the evaluation index of control points setting was determined. Based on the GPS data of buses, the computing methods of the average dwell time, the difference between inter-stop travel time, and the comprehensive evaluation index were established. The overall optimum and the local optimum time control point selection methods were brought forward. The overall optimum method can select the optimal solution from all the alternatives, but the calculation process is cumbersome and time consuming; whereas the local optimum method can save a lot of costs under the premise of ensuring certain optimization effects. Finally, bus route 102 in Suzhou City was taken as an example to analyze the two selection methods and the results show that the two methods can both select an effective time control point scheme.