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Congestion control mechanism such as random early detect (RED) allows more efficient usage of network resources. RED uses static thresholds (high and low) in combating congestion. However, as network becomes more dynamic with the introduction of multimedia and real time application, this ldquostaticrdquo approach becomes inefficient. This paper proposed a dynamic RED mechanism, namely, fuzzy active queue management (FuzAQM). FuzAQM monitors the condition of a network in real time and changes its RED parameters based on the congestion level using fuzzy control. FuzAQM is implemented and tested using NS2 network simulator. The simulation results showed that the proposed mechanism improves the total network throughput. FuzAQM also ensures a fairer treatment of lower priority packets and at the same time maintains the throughput of higher priority packets in the network.