The Steiner tree problem is the canonical generalization of minimum spanning tree (MST). When connectivity is required only among a fixed subset of vertices (terminals), the goal is to maintain a minimum-cost tree connecting these terminals as the graph undergoes edge updates. While dynamic MST has been studied since the 1980s~[Frederickson, STOC'83, SICOMP'85], and the first sublinear-in-$n$ dynamic MST algorithm dates back almost thirty-five years to Eppstein, Galil, Italiano, and Nissenzweig~[FOCS'92, JACM'97], achieving sublinear-in-$n$ update time for dynamic Steiner tree has long remained open, as a single edge update can invalidate many routes in the underlying terminal metric closure. We present the first fully dynamic algorithm for Steiner tree that achieves a constant-factor approximation with sublinear-in-$n$ update time. For any fixed $0<ζ<1/2$, our deterministic algorithm maintains an $O_ζ(1)$-approximate Steiner tree for undirected graphs with polynomially bounded edge weights in $\widetilde O(n^{1/2+ζ})$ amortized update time, answering cost queries in $O(1)$ time, and reporting an explicit tree in $\widetilde O(n^{1+ζ})$ time. Our approach combines periodic terminal-metric rebuilds on a dynamic spanner with a top-tree dynamic program that localizes edge deletions and reconnects surviving components through a dynamic distance sparsifier. Along the way, we give a simpler randomized insertion-only algorithm with a better, explicit approximation ratio.

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