The　Obstacle-Avoiding　Octagonal　Steiner　Minimal　Tree　(OAOSMT)　problem　has　been　proved　to　be　a　NP-hard　problem,　and　it　is　very　important　for　Very　Large　Scale　Integration　(VLSI)　Non-Manhattan　routing　problem.　In　this　paper,　we　present　an　efficient　algorithm　called　OA-OST-DPSO　for　Obstacle-Avoiding　Octagonal　Steiner　Minimal　Tree　construction.　In　our　algorithm,　according　to　the　feature　of　OAOSMT　problem,　we　construct　an　appropriate　particle　coding　model　and　a　fitness　evaluation　function.　Meanwhile　we　integrate　the　crossover　and　mutation　operator　of　genetic　algorithm　(GA)　into　the　Particle　Swarm　Optimization　(PSO)　algorithm.　Besides,　edge　transformation　is　employed　to　make　the　particles　have　the　ability　to　achieve　the　more　optimal　solution　while　Union-Find　partition　is　used　to　prevent　the　generation　of　invalid　solution.　Finally,　our　algorithm　uses　a　dynamic　parameter　strategy,　in　order　to　make　sure　that　the　search　is　more　efficient.　The　experimental　results　show　that　our　algorithm　has　a　good　performance,　can　in　the　presence　of　obstacle,　greatly　shorten　the　length　of　the　wiring.　©　2013　IEEE.