Cloud Computing (CC) denotes to a method of providing IT services in which users access shared resources via the internet using web-based tools along with its applications. This study addresses the challenges of dynamic resource allocation in CC, particularly in optimizing resource management to handle fluctuating workloads and ensuring efficient system performance. A Dynamic Scheduling and Consolidation Mechanism (DSCM) is proposed for Infrastructure-as-a-Service (IaaS) environments, which allocates resources based on the real-time load of virtual machines (VMs). DSCM dynamically scales resources by adding or removing instances in response to system load and user-defined criteria. This approach improves load balancing, enhances energy efficiency, and optimizes key performance metrics, such as throughput, by continuously monitoring VM loads. The results show that DSCM outperforms traditional methods in terms of resource utilization and cost-effectiveness. Future work will explore further optimizations to handle larger cloud infrastructures and integrate advanced fault-tolerant mechanisms to improve reliability and scalability.