A dynamic ampacity rating algorithm is developed for the real time rating of overhead ACSR conductor. The algorithm is comprised of a transient pseudo macroscopic conductor temperature model combined with real time meteorological and conductor measurements. The real time measurments consist of conductor surface temperature, conductor current, ambient air temperature and wind velocity obtained from a conductor mounted module. The conductor temperature gradient is deemed important and its effect was incorporated into the thermal model. Difficult to monitor variables, such as solar heating and precipitation loss effects, are inferred by the algorithm.