Traffic Engineering is the emerging mechanism for the Internet Network Provider required optimizing network performance and traffic delivery. In the multicast communication the message is transferred from one sender to various active receivers instead of all receivers like broadcast communication. Traffic is a major problem in the multicast communication which is widely used by various multimedia applications. In the existing system the MPLS based approach was used which transfer the packet through the explicit labeled switch path. In the proposed system the pure IP based TE is used with the bandwidth optimization techniques proceeding with PIM-SM routing. Dynamic Layered Routing Protocol is used to manage the changes happened in the topology and also the member management in Multicast network.