A dynamic version of the improved delayed detached-eddy simulation (IDDES) based on the differential Reynolds-stress model (RSM), referred to as the RSM-DynIDDES, is developed by applying the dynamic Smagorinsky subgrid model to the large eddy simulation (LES) branch of the IDDES. The RSM-DynIDDES simulates the periodic hills flow after a basic numerical validation for the decaying isotropic turbulence simulation. Well-predicted velocity profiles and R eynolds stress distributions are obtained by the RSM-DynIDDES in the periodic hills flow. The simulation results indicate that the RSM-DynIDDES can capture more small-scale vortex structures in the LES region away from the wall than the original RSM-based IDDES (RSM-IDDES). The RSM-DynIDDES is also employed in simulating the transonic buffeting of a launch vehicle with a payload fairing. The numerical results have been compared with that of the RSM-IDDES. It is found that the RSM-DynIDDES can improve turbulence resolution in the off-wall region while retaining the advantages of the original RSM-IDDES in simulating the instability process of the free shear layer.