We propose a hierarchical algorithm for approximating shortest paths between all pairs of nodes in a large-scale network. The algorithm begins by extracting a high-level subnetwork of relatively long links (and their associated nodes) where routing decisions are most crucial. This high-level network partitions the shorter links and their nodes into a set of lower-level subnetworks. By fixing gateways within the high-level network for entering and exiting these subnetworks, a computational savings is achieved at the expense of optimality. We explore the magnitude of these tradeoffs between computational savings and associated errors both analytically and empirically with a case study of the Southeast Michigan traffic network. An orderof-magnitude drop in computation times was achieved with an on-line route guidance simulation, at the expense of less than 6% increase in expected trip times.O ur interest in this article is directed toward solving very large-scale shortest path problems, motivated by the problem of finding minimum travel time paths within an on-line route guidance system. Route guidance within the context of Intelligent Transportation Systems is the task of providing routes between origins and destinations that promise to minimize the trip times experienced. The link travel times that are provided as an input to this function are timedependent forecasts based upon current and anticipated traffic congestion (see e.g., Kaufman and Smith, [7] Wunderlich and Smith [9] ). Because of the rapid change of link travel times caused by time-varying travel demands and lane blockage resulting from incidents, the data used in computing the shortest paths information is updated periodically, ideally every 5 to 10 minutes. During the time interval between data updates, a shortest path must be provided for every origin/destination (O/D) associated with trips that begin during that time slice. Thus, the calculation of shortest paths must be efficient enough to respond in a timely way to trip requests on a real-time basis. Because a realistic problem may have hundreds of thousands of nodes, all of which may be potential origins and destinations, a fast heuristic that can provide good approximations in a limited amount of time may be preferred to exact methods.We present here a hierarchical approach for finding approximate solutions for shortest path problems. A key idea behind our development is the imposition of a hierarchical network structure. Our approach is motivated by the observation that traffic networks have a hierarchical structure that divides links (and nodes corresponding to intersections of these links) into two or more classes (Yagyu et al. [10] ). The higher level corresponds to longer links (i.e., highways) where the frequency of decision opportunities is low, with routing decisions being correspondingly more important. The lower level corresponds to links of limited duration (i.e., surface streets) and, correspondingly, more opportunities to correct routing decision errors. The links and nodes compri...