A communications system provides a dynamic setting of optimal buffer sizes in IP networks. A method for dynamically adjusting buffer capacities of a router may include steps of monitoring a number of incoming packets to the router, determining a packet arrival rate, and determining the buffer capacities based at least partially on the packet arrival rate. Router buffers are controlled to exhibit the determined buffer capacities, e.g. during writing packets into and reading packets from each of the buffers as part of a packet routing performed by the router. In the disclosed examples, buffer size may be based on the mean arrival rate and one or more of mean packet size and mean waiting time.