Growth in the VLSI process and design technology is resulting into a continuous increase in the number of IPs on a chip to form a system. Because of many IPs on a single chip, efficient communication between IPs is essential. We propose a dynamically reconfigurable 3-layer bus structure which can adapt to the pattern of data transmission to achieve an efficient data communication between various IPs. The proposed 3-layer bus can be reconfigured to multi-single bus mode, and single-multi bus mode, thus providing the benefits of both single-bus and multi-bus modes. Experimental results show that the flexibility of the proposed bus structure can reduce data transmission time compared to the conventional fixed bus structure. We incorporated the proposed bus structure in a JPEG system and verified that the proposed structure achieved an average of 22% improvement in time over the conventional fixed bus structure.