This dissertation is looking at the improvement of traffic engineering in the Internet Protocol (IP) network. The need of this improvement is because the conventional IGP algorithms that controlled the traffic engineering in IP network seem to be ineffectively to distribute the traffic flows which will lead to the congestion at some point in the network while the others traffic flows are underutilized. Therefore, a network simulation was carried out to improve the traffic engineering in the IP network by using new protocol known as Multi Protocol Label Switching (MPLS). Thus, this dissertation reviews the drawback of conventional IGP algorithms in the IP network in order to provide a background for the network simulation, the traffic engineering concept and the MPLS algorithms concept in order to improve the traffic engineering. Then, a proposed model network was designed for the network simulation. The network simulation is used to demonstrate how the MPLS with (ER-LSP) and (CR-LDP) algorithms have improved the traffic engineering in the IP network.Finally, an analysis of the simulation is provided to measure the improvement that achieved from the network simulation.