A system for hierarchical occupancy based congestion management includes a buffer embodied in a computer readable storage medium including a plurality of buffer units for storing packets of a data flow received from sources. The system includes a buffer manager that stores information about the packets stored in the buffer, including a selection criterion associated with each of the plurality of sources and a congestion estimator that monitors a congestion level in the buffer. The system also includes a occupancy sampler that randomly selects at least two occupied buffer units from the plurality of buffer units and identifies the source of the packet stored in each of the occupied buffer units and a congestion notification message generator that generates a congestion notification message; wherein if the congestion level in the buffer exceeds a threshold value the congestion notification message is sent to the identified source with a higher selection criteria.