Long Term Evolution (LTE) is the latest deployed broadband wireless technology from the 3 rd Generation Partner Ship Project (3GPP) family. Nowadays there is an increased demand on the QoS requirements and inherently on further optimizing the usage of not only the scarce radio resources but also the overall network performance over the flat IP network more efficiently. Traditional scheduling algorithms are not able to fulfill such complex requirements. In this paper an Optimized Service Aware (OSA) scheduling algorithm is proposed, aiming at addressing the aforementioned challenges. It consists of three main functional units. The paper presents through simulations that the proposed OSA algorithm is able to achieve optimum radio and end user performance. The performance of the OSA is compared against other well-known scheduling algorithms: Weighted Blind-Equal Throughput (w-BET), Weighted Maximum Throughput (w-MaxT), and Weighted Proportional Fair (w-PF).