This thesis presents an approach to traffic engineering that uses DiffServ and MPLS technologies to provide QoS guarantees over an IP network. The specific problem described here is how best to route traffic within the network such that the demands can be carried with the requisite QoS while balancing the load on the network. A traffic engineering algorithm that determines QoS guaranteed label-switched paths (LSPs) between specified ingress-egress pairs is proposed and a system that uses such an algorithm is outlined. The algorithm generates a solution for the QoS routing problem of finding a path with a number of constraints (delay, jitter, loss) while trying to make best of resource utilisation. The key component of the system is a central resource manager responsible for monitoring and managing resources within the network and making all decisions to route traffic according to QoS requirements. The algorithm for determining QoS-constrained routes is based on the notion of effective bandwidth and cost functions for load balancing. The network simulation of the proposed system is presented here and simulation results are discussed.