This paper proposes TE (Traffic Engineering) in MPLS (Multi Protocol Label Switching) networks to provide alternate data path link when the network is congested. TE automatically creates and maintains a label switch path networks using RSVP (Resource Reservation Protocol).RSVP reserves the bandwidth along the path from the source to destination. The main novelty of this paper is implementing MPLS TE that it provides a combination of ATM's TE capabilities along the CoS (Class of service) at layer 2.5 to reduce latency and to improve the speed. The tunnel formation along the LSP (Label Switch Path) for forwarding packets and is simulated using GNS3 tool. The simulation results for MPLS network with OSPF(Open Shortest Path First ) and with two tunnels achieves a round trip time of 36milliseconds for data packet size of 8000 bytes faster than existing network with reduced latency and high speed. This paper provides backup and elimination of redundancy tunnels by implementing Fast Rerouting technique in router.