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LTE is a Long Term Evolution of wireless technology developed by 3GPP. In order to achieve the rapid growth of subscriber number and the ever increasing need for higher data rates, an ideal scheduling algorithm is needed for LTE system. In this article, we propose a new factor, Priority Upgrade Granularity (PUG), whose value influences the scheduling performance greatly. In addition, a dynamic PUG adjustment method according to user density and service delay requirement are presented. Numerous simulation results witness the increase in system throughput and user fairness compared with three widely used scheduling schemes, i.e. max C/I, Round Robin (RR) and Proportion Fair (PF).