The problem of dynamic transit scheduling is addressed, and a method for transient and steady-state solutions is developed. The dynamic demand-supply formulation employed is based on previously calibrated disaggregate demand specifications. The existence and feasibility of solutions are examined, and stability conditions are derived. Numerical examples for both urban and rural conditions are given. The new methodology does not require time-series endogenous data but only initial conditions to provide long- or short-term scheduling plans. Futhermore, it takes into account passenger demand fluctuations and explicitly deals with management responsiveness and time lags in implementing scheduling decisions. Owing to its dynamic nature the methodology can be used as a design tool in transit scheduling and for assessing the effects of time-varying exogenous events such as gasoline price fluctuations, transport budget restrictions and other contingencies.