Abstract: With the rapid development of high-speed and Computational resources Load Balancing has become a necessity in emerging distributed environment to address the inherit heterogeneity in computing resources. From two load balancing strategies static and dynamic, dynamic strategy is efficient for these systems. In dynamic also the centralized dynamic approach limits the scalability with the load balancing unit itself becoming a bottleneck. Conversely, the decentralized dynamic approach though overcomes the above problems, suffers from increased communication overhead. The hybrid dynamic approach which uses centralized and decentralized strategy suffers from bottleneck and communication overhead problem for large number of system. In this paper we propose the design of a simple yet effective improved hybrid dynamic load balancing algorithm that overcomes the limitations of hybrid dynamic algorithm and performs competitively for heterogeneous system having large number of heterogeneous nodes.