— In this paper, we present an analytic model and methodology to determine optimal scheduling policy that involves two dimension space allocation: time and code, in High Speed Downlink Packet Access (HSDPA) system. A discrete stochastic dynamic programming model for the HSDPA downlink scheduler is presented. Value iteration is then used to solve for optimal policy. This framework is used to find the optimal scheduling policy for the case of two users sharing the same cell. Simulation is used to study the performance of the resulted optimal policy using Round Robin (RR) scheduler as a baseline. The policy granularity is introduced to reduce the computational complexity by reducing the action space. The results showed that finer granularity (down to 5 codes) enhances the performance significantly. However, the enhancement gained when using even finer granularity was marginal and does not justify the added complexity. The behaviour of the value function was observed to characterize ...