We propose the Loan-Grant based Round Robin (LGRR) scheduler in the DiffServ domain. Traffic from all streams1 in all classes is carried in a logical frame. Each frame includes smaller rounds for each class, and only one packet can be transmitted from each stream inside a class in each round. A stream can transmit traffic in the frame when it has enough grants. Each stream inside a class first obtains some quantum from the scheduler according to its average arrival rate, bandwidth usage, and traffic status. Bursty streams can be processed quickly by requesting bandwidth loan from the scheduler. To control the amount of transmitted bits from each stream, the loan is paid back from the future acquired quantum. Our evaluation and comparison shows that our algorithm performs better than DRR in handling traffic under both normal and bursty traffic.