We propose an online traffic engineering (TE) scheme for efficient routing of bandwidth guaranteed connections on a Multiprotocol label switching (MPLS)/wavelength division multiplexing (WDM) network with a traffic pattern varying with the time of day. We first consider the problem of designing the WDM virtual topology utilizing multi-hour statistical traffic pattern. After presenting an effective solution to this offline problem, we introduce a Dynamic tRaffic Engineering AlgorithM (DREAM) that makes use of the bandwidth update and rerouting of the label switched paths (LSPs). The performance of DREAM is compared with commonly used online TE schemes and it is shown to be superior in terms of blocked traffic ratio.