The recently proposed Active Queue Management (AQM) is an effective method used in Internet routers for congestion control, and to achieve a tradeoff between link utilization and delay. The de facto standard, the Random Early Detection (RED) AQM scheme, and most of its variants use average queue length as a congestion indicator to trigger packet dropping. In this paper, we propose a novel proportional and differential RED algorithm, called NPDRED, as an extension of RED. NPD-RED is based on a selftuning Proportional and Differential controller, which not only considers the instantaneous queue length at the current time point, but also takes into consideration the ratio of the current differential error signal to the buffer size. Furthermore, we give theoretical analysis of the system stability and give guidelines for the selection of feedback gains for the TCP/RED system to stabilize the instantaneous queue length at a desirable level. Extensive simulations have been conducted with ns...