The real application of Di®erentiated ser- vices (Di®Serv) network requires the Di®Serv routers to support di®erent data rates and time delays for the subscribers with di®erent priorities. However, classical routers and AQM algorithms for the routers can not meet the requirements. To solve the problems, this paper de- velops the schemes of Di®Serv edge router (DER) and Di®Serv core router (DCR) with multiqueues, classi¯er and scheduler and a Di®Serv AQM algorithm. The pro- posed Di®Serv AQM algorithm based on DER can process the heterogeneous and classi¯ed tra±c °ows. The Di®- Serv AQM algorithm is derived from two theorems about the congestion conditions of Di®Serv network in di®erent links, it can prevent the possible congestion and ensure the data rates and time delays for the subscribers with higher priorities. The system simulations validate the proposed Di®Serv routers and Di®Serv AQM algorithm.