A closed loop dynamic interconnect bus allocation method and architecture for a multi layer SoC is disclosed. In one embodiment, a system on chip (SoC) includes multiple masters, multiple slaves, multiple buses, and an interconnect module coupled to multiple masters and multiple slaves via multiple buses. The interconnect module includes an arbiter. The SoC also includes an inner characteristic bus coupled to the plurality of masters, the plurality of slaves and the interconnect module. The interconnect module receives on-chip bus transactions substantially simultaneously from the multiple masters to be processed on one or more of the multiple slaves via the multiple buses. The interconnect module also receives inner characteristic information of the on-chip bus transactions via the inner characteristic bus. Further, the interconnect module allocates the received on-chip bus transactions from the multiple masters to associated one or more of multiple slaves based on the received inner characteristic information.