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The TCP Vegas congestion control algorithm is studied in GEO satellite networks. Based on Vegas algorithm, a new improved Vegas3 algorithm is presented. During the congestion avoidance, the improvement measure is to divide network conditions into more particular state; then to take special countermeasure for special conditions. This algorithm integrates Vegas, Vegas-A, and Vegas1 algorithm into one algorithm, and adjusts the parameters alpha and beta of Vegas dynamically for adapting to the change of network conditions. The result of our simulation shows that the Vegas3 algorithm is superior to the Reno, SACK, Vegas, Vegas1, Vegas2 and Vegas-A algorithm in throughput and round trip time.