This paper proposes an improved multi-class dynamic network traffic flow propagation model with a consideration of physical queues. Each link is divided into two areas: Free flow area and queue area. The vehicles of the same class are assumed to satisfy the first-in-first-out (FIFO) principle on the whole link, and the vehicles of the different classes also follow FIFO in the queue area but not in the free flow area. To characterize this phenomenon by numerical methods, the improved model is directly formulated in discrete time space. Numerical examples are developed to illustrate the unrealistic flows of the existing model and the performance of the improved model. This analysis can more realistically capture the traffic flow propagation, such as interactions between multi-class traffic flows, and the dynamic traffic interactions across multiple links.