Dynamic Touch is a new system in Fable III that is used to lead villagers throughout Albion.
Unlike previous Fable games, where players had to use the 'Follow' expression in order to get people to follow them, the Dynamic Touch simplifies the system and makes it easier. Simply by pressing the corresponding button, one can take the hand of a villager or child and guide them throughout the land. One can use Dynamic Touch on a villager once they have acquired enough relationship points with them, or during certain jobs. During said jobs, such as the capture of criminals or the involuntary "recruitment" of civilians into factory jobs in Reaver Industries, one can see the target villager visibly resisting.
Dynamic Touch can also be used with the new interactive Expression Touch. An example of this is using Expression Touch to comfort a child in a burning building, then using Dynamic Touch to carry the child to safety.
While the primary Hero of the 'universe' can use Dynamic Touch, sadly, any co-op Heroes are unable to do so, even with children that they may have with the primary Hero.