Abstract: The transmission delay brings about disadvantages of congestion control in network, while the relevant existing algorithm depends on the exactitude of model excessively. A new active queue algorithm is thus proposed by improving Smith estimate compensator in combination with fuzzy control, which is link up with TCP. The improved Smith estimate compensator can control more timely the TCP congestion, and fuzzy controller can get rid of an exact model for the object to control. In this way, the advantages of Smith estimate compensator and fuzzy controller may complement each other. The results of numerical example show the validity of such a tactical combination.