The Demand for circulating cooling water (CCW) with high temperature stability and a quick response to temperature control is essential for precision engineering, so a dynamic thermal filtering method is proposed in this paper. Some CCW is bypassed, blocked, and used as a thermal capacity medium, and the temperature fluctuation of CCW is significantly reduced by heat exchanging with the medium. The temperature of the medium dynamically follows the set value of the CCW temperature by real time updating, and so realizes a quick CCW temperature control response. The attenuation ratio of temperature fluctuation was derived, theoretically validating the effectiveness of the method. The experimental results indicate that a CCW temperature fluctuation attenuation ratio of tens of dB (−3.47 dB, −6.91 dB, −10.97 dB and −15.28 dB corresponding to temperature fluctuation frequencies of 0.01 Hz, 0.025 Hz, 0.053 Hz and 0.105 Hz, respectively) is achieved by the proposed method. The updating time of thermal capacity medium is 82 s, which means that the temperature fluctuation attenuation remains functionally valid when the set value of CCW changes. The proposed method is low cost in operation and provides an effective approach to satisfy the challenging demand for CCW with high stability and a good dynamic temperature control performance.