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Service-oriented architecture (SOA) provides a scalable and flexible framework for service composition. Service composition algorithms play an important role in selecting services from different providers to reach desirable QoS levels according to the performance requirements of composite services, and improve customer satisfaction. This paper proposes a novel QoS-based dynamic service composition technique for web services with Ant Colony Optimization (ACO) in an optimization approach. The novelty of this work lies with our multi-objective optimal-path selection modeling for QoS-based dynamic web service composition and a new version of ACO algorithm that is proposed to solve this multi-objective optimization problem. The experiments show that the new version of ACO algorithm is very efficient in solving such a problem.