A dynamic resource allocation system in a switch is provided. During operation, the system can represent, to an operational unit of the switch, a first subset of hardware elements of the switch that are allocated to the operational unit as a logical element. The system can then determine a request for dynamic reallocation of the hardware elements to the operational unit. Accordingly, the system may determine whether the reallocation of the hardware elements is feasible in the switch. If the reallocation of the hardware units is feasible, the system can allocate a second subset of the hardware elements to the operational unit during the runtime of the switch. The system can then incorporate the second subset of the hardware elements into the logical element.