The application of network coding (NC) in passive optical network (PON) can better solve the problem of bandwidth requirement. A dynamic wavelength and bandwidth allocation (DWBA) algorithm based on NC is proposed for time and wavelength division multiplexing passive optical network(TWDM-PON). The algorithm comprehensively considers the round trip time(RTT) of optical network unit(ONU), the bandwidth requirements of coded ONU group and the queuing delay after the introduction of NC, dynamically adjusts the scheduling order of coded ONU group, selects multiple wavelengths according to the sequence of upload time, and uploads the data packets of coded ONU group as soon as possible. The simulation results show that the proposed algorithm can reduce queueing delay and end-to-end delay and improve network throughput.