In the Internet, network congestion is becoming an intractable problem. Congestion results in longer delay, drastic jitter and excessive packet losses. As a result, quality of service (QoS) of networks deteriorates, and then the quality of experience (QoE) perceived by end users will not be satisfied. As a powerful supplement of transport layer (i.e. TCP) congestion control, active queue management (AQM) compensates the deficiency of TCP in congestion control. In this paper, a novel adaptive traffic prediction AQM (AT-PAQM) algorithm is proposed. ATPAQM operates in two granularities. In coarse granularity, on one hand, it adopts an improved Kalman filtering model to predict traffic; on the other hand, it calculates average packet loss ratio (PLR) every prediction interval. In fine granularity, upon receiving a packet, it regulates packet dropping probability according Z. Na ( ) School to the calculated average PLR. Simulation results show that ATPAQM algorithm outperforms other algorithms in queue stability, packet loss ratio and link utilization.