An example method for adapting Proportional Integral controller Enhanced (PIE) algorithm for varying network conditions is provided and includes estimating an average dequeue rate at which packets are dequeued from a queue of packets maintained in a buffer in a network element operating, estimating a current queuing latency for the queue of packets based on the average dequeue rate, determining a target delay based on the average dequeue rate, the target delay varying with the average dequeue rate according to a predetermined relationship, and calculating a current drop probability associated with a probability that packets arriving at the buffer will be dropped or marked, the current drop probability being calculated using at least the current queuing latency and the target delay. In some embodiments, a threshold for a number of bytes dequeued from the buffer is estimated based on network conditions.