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This paper proposes an optimal dynamic reserve activation plan after the occurrence of an emergency situation (generator/transmission line outage, load increase or both). An optimal plan is developed to handle the emergency, using the coordinated action of fast and slow reserves, for secure operation with minimum overall cost. It considers the reserves supplied by the conventional thermal generators (spinning reserves), hydro power units and load demands (demand-side reserves). The optimal backing down of costly/fast reserves and bringing up of slow reserves in each sub-interval in an integrated manner is proposed. The proposed reserve activation approaches are solved using the genetic algorithm, and some of the simulation results are also compared using the Matlab optimization toolbox and the general algebraic modeling system (GAMS) software. The simulation studies are performed on the IEEE 30, 57 and 300 bus test systems. These results demonstrate the advantage of the proposed integrated/dynamic reserve activation plan over the conventional/sequential approach.