The focus of the present work is to develop a simulation model using cellular automata for work zone traffic containing homogeneous traffic condition. Work zone is created by blocking some of the cells. It can be seen that the lane drop not only produces a jam in the blocked lane as well as in the bypass lane. Space-time plots and speed distribution plots are obtained for various cell occupancies and the effect of lane drop is presented. Reduction in capacity due to the lane drop is obtained and the results are compared with the values suggested by Highway Capacity Manual.