The imbalance of traffic distribution in service overlay network caused by selfish routing influences the efficiency
and stability of network. Therefore, the paper proposes a novel approach of dynamic traffic engineering to optimize traffic
distribution in the overlay layer. A model of dynamic traffic engineering for service overlay network is proposed based on the
stochastic dynamic optimization traffic distribution theory. A distributed algorithm is designed according to the model, which
can control the trade-off between selfish routing and loading equilibrium. The experiment result shows that the approach has
better performance and better adaptability for real time traffic than prior methods.