Overbalanced drilling (OBD) is known to be cheap and simple but formation damage and reduced rate of penetration (ROP) are some of its disadvantages. However, underbalanced drilling (UBD) minimizes formation damage and achieve high ROP, but it is expensive, complex and can't be applied in many cases. In this research a new technique that incorporates the advantages and avoids the disadvantages of these drilling systems is proposed and is referred to as Dynamic Underbalanced Drilling (DUBD). In DUBD a pressure drop at the environ of the bit, below and around, is created that is restored to normal pressure above the bit and such conditions requires some minor modifications to the design of drill bit. Thus at the zone located below and around the bit underbalance conditions are dominated while the rest of the hole is overbalanced. The anticipated cost of this technique is nearly zero and it is expected to save much of drilling costs. DUBD is expected to provide higher ROP that may exceed ordinary UBD in some cases, so saves time, reduce formation damage, saves costs (cheaper than OBD) and enables gathering information about the reservoir while drilling. This can save some of logging and testing costs. In addition, DUBD may reduce drilling problems, particularly time sensitive problems, and overcome problems of UBD. Furthermore, it can be used safely in over pressurized shale and salt formations, where UBD is not recommended.