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Path planning can be perceived as a combination of searching and executing the optimal path between the start and destination locations. Deliberative planning capabilities are essential for the motion of autonomous unmanned vehicles in real-world scenarios. There is a challenge in handling the uncertainty concerning the obstacles in a dynamic scenario, thus requiring an intelligent, robust algorithm, with the minimum computational overhead. In this work, a fuzzy gain-based dynamic ant colony optimization (FGDACO) for dynamic path planning is proposed to effectively plan collision-free and smooth paths, with feasible path length and the minimum time. The ant colony system’s pheromone update mechanism was enhanced with a sigmoid gain function for effective exploitation during path planning. Collision avoidance was achieved through the proposed fuzzy logic control. The results were validated using occupancy grids of variable size, and the results were compared against existing methods concerning performance metrics, namely, time and length. The consistency of the algorithm was also analyzed, and the results were statistically verified.