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Nowadays, multi-core processors are becoming mainstream due to their superior performance and power characteristics. With an increasing number of processor cores being integrated onto a single chip, multi-core processors require efficient organization and management of the on-chip cache resources to provide fast data accesses for concurrently running threads. Cache allocation and sharing is critical to the effective utilization of multi-core processors. Unbalanced CPU cache sharing can easily cause serious problems, such as thread starvation, priority inversion, and inadequate CPU accounting. Aiming at this situation, a new operating system scheduling algorithm which produces balanced schedules and stable system performance by reconfiguring CPU time quantum in terms of balanced cache allocation is presented. By experiment verification, the system performance stability adopting dynamic cache distribution scheduling algorithm is higher than that using conventional scheduling algorithms. Consequently, dynamic cache distribution scheduling algorithm improves the performance stability of operating system and applications effectively on multi-core architecture.