The invention comprises a method and system for dynamically processing messages. After a message is received from a network or from an internal application, and the message type is identified, the invention determines whether an optimized handler should be used to process messages of the identified message type. If an optimized handler has not previously been generated for the identified message type or is otherwise not available, an optimized handler may be generated, during run-time, for subsequent processing of messages of the identified message type. In some embodiments, the invention maintains statistics relating the processing characteristics of different types of messages and these statistics are used to determine whether to generate an optimized handler or to use a generic handler to process subsequently received messages having a certain identified message type.