Abstract-Modern distributed applications are embedding an increasing degree of dynamism, from dynamic supply-chain management, enterprise federations, and virtual collaborations to dynamic resource acquisitions and service interactions across organizations. Such dynamism leads to new challenges in security and dependability. Collaborating services in a system with a Service-Oriented Architecture (SOA) may belong to different security realms but often need to be engaged dynamically at runtime. If their security realms do not have a direct cross-realm authentication relationship, it is technically difficult to enable any secure collaboration between the services. A potential solution to this would be to locate intermediate realms at runtime, which serve as an authentication-path between the two separate realms. However, the process of generating an authentication path for two distributed services can be highly complicated. It could involve a large number of extra operations for credential conversion and require a long chain of invocations to intermediate services. In this paper, we address this problem by designing and implementing a new cross-realm authentication protocol for dynamic service interactions, based on the notion of serviceoriented multi-party business sessions. Our protocol requires neither credential conversion nor establishment of any authentication path between the participating services in a business session. The correctness of the protocol is formally analyzed and proven, and an empirical study is performed using two production quality Grid systems, Globus 4 and CROWN. The experimental results indicate that the proposed protocol and its implementation have a sound level of scalability and impose only a limited degree of performance overhead, which is for example comparable with those security-related overheads in Globus 4.