A novel model on dynamic resource allocation in the WDM optical networks is proposed, basing on the integrated considerations of the impacts of transmission impairments and service classification on dynamic resource allocation in the optical layer.In this model, the priorities of optical connection requests are mapped into different thresholds of transmission impairments, and a uniform method which is adopted to evaluate the virtual wavelength path (VWP) candidates is defined. The Advanced Preferred Wavelength Sets Algorithm (A-PWS) and the heuristic Dynamic Min-Cost & Optical Virtual Wavelength Path Algorithm (DMC-OVWP) are presented addressing the routing and wavelength assignment (RWA) problem based on dynamic traffic and multi priorities in wavelength-routed optical networks. For a received optical connection request,DMC-OVWP is employed to calculate a list of the VWP candidates, and an appropriate VWP which matches the requests priority is picked up to establish the lightpath by analyzing the transmission qualities of the VWP candidates.