Vehicular traffic congestion has become a daily problem that most people suffer from, especially in urban areas. Moreover, the remarkable research results coming from the fields of in-vehicle digital technology, wireless communication, embedded systems, intelligent routing system, sensors and ad-hoc technologies have given rise to the emergence and evolution of connected autonomous vehicles (CAVs). The transportation community has come to realize that balancing the traffic load on existing roads is a key for effective mitigation of congestion. The key features of the dynamic traffic management (DTM) paradigm are exploiting interaction with the drivers (or vehicles) to predict traffic jams and proactively employ means to avoid them. This chapter introduces the reader to the notion of DTM in the context of intelligent transportation system. Particularly, the complications in realizing the full potential of DTM are discussed and how CAV can be instrumental in overcoming these complications.