Traditional methods for stochastic user equilibrium are either probit-based or logit-based; both have weaknesses that limit their usefulness. This paper proposes a mixed logit algorithm for Stochastic Dynamic User Equilibrium (SDUE) which is capable of capturing required correlations at a reasonable cost. That is, the flexibility in specification of error terms provided by the mixed-logit allows the SDUE model to capture spatial and temporal correlations in unobserved factors. In addition, it does not require route enumeration. The capabilities of a mixed-logit model enable the development of a SDUE traffic assignment model with correct flow propagation. A mathematical programming problem is formulated for the SDUE whose solution is found by an iterative mixed-logit-based network-loading procedure which in theory is expected to calculate link flows at a more efficient rate compared to probit-based models.