This work proposes a distributed fault protection mechanism called the Dynamic-Shared Segment Protection (DSSP) algorithm for WDM (Wavelength Division Multiplexing) mesh networks. The objects are to assure high probability of path protection and efficient use of network resources. The proposed approach exploits the segment protection mode, which accommodates the characteristics of both path-based and link-based protections, for providing finer service granularities, to satisfy the versatile requirements of critical applications in the foreseeable future. To show that DSSP can improve performance efficiency, simulations are conducted using four networks (NSFNET, USANET, Mesh 66, Mesh 99) for a comparative study of the proposed DSSP versus ordinary shared protection schemes and SLSP (Short Leap Shared Protection). Simulation results reveal that the proposed DSSP method results in much lower blocking probability and has higher network utilization. Consequently, it is very useful for applications to a real-time WDM network, which changes status dynamically.