Load balancing algorithms are designed essentially to equally distribute the load on processors and maximize their utilities while minimizing the total task execution time. In order to achieve these goals, the load-balancing mechanism should be “fair” in distributing the load across the different processors. This implies that the difference between the heaviest-loaded and the lightest-loaded processors should be minimized. Therefore, the load information on each processor must be updated such that the load-balancing mechanism can be more effective. In this work, we present an application independent dynamic algorithm for scheduling tasks and load- balancing in message passing systems. We propose a DAG-based Dynamic Load Balancing algorithm for Real time applications (DAG-DLBR) that is designed to work dynamically to cope with possible changes in the load that might occur during runtime. This algorithm addresses the challenge of devising a load balancing scheme which judicially deals with the hybrid execution of existing real-time application (represented by a Direct Acyclic Graph (DAG)) together with newly arriving jobs. The main objective of this algorithm is to reduce response times of the newly arriving jobs while maintaining the time constrains of the existing DAG. To evaluate the performance of the DAG-DLBR algorithm, a comparison with the performance of two common dynamic load balancing algorithms is presented. This comparison is performed by evaluating, experimentally, the execution time of different load balancing algorithms on a homogenous real parallel machine. In addition, the values of load imbalance, the execution time, and the communication overhead time are evaluated analytically using different benchmarks as test-bed workloads. These workloads cover a wide range of dynamic applications with different task types. Experimental results illustrate the improved performance of the DAG-DLBR algorithm compared to both distributed and hierarchal based algorithms by at least 12 and 19%, respectively. This improvement is true for all workloads, even with highly dependent workload. The DAG-DLBR algorithm achieves lower computation time than its corresponding values of both the distributed and the hierarchical-based algorithms for 4, 8, 12 and 16 processors.