difference between Gre tunnel and vpn tunneling? Solution 1. VPN tunneling means Virtual private networks. This network is used to connect two locations for transferring the data over the two locations using internet. Where GRE means Generic routing encapsulation. This will create private point to point connection between two networks for transferring the data using internet. 2. VPN tunneling uses many number of Encryption methods to secure the data while transferring the data, so that the data cannot be attacked by the third party. GRE tunneling uses the Encapsulation method to transfer the data. That means the encapsulated packet will be routed using internet to the destination. It works with the encapsulating the payload. When the packet is encapsulated the inner packet payload will not change. As the outer packet reaches the destination the encapsulation is removed and the final payload is forwarded to the destination. 3. VPN tunneling requires an internet connection and some software applications and some installations. So it is less expensive and less installation to connect the two new networks. GRE tunneling does not have any mechanisms for the flow control and security by default. By this feature this tunneling can be easily configured. 4. VPN tunneling cannot forward the data from discontiguous network through a single tunnel. GRE tunneling can forward the data from discontiguous network through a single tunnel. 5. VPN tunneling cannot be used to forward multicast traffic. GRE tunneling can forward multicast traffic. By this reason advertisements sent by routing protocols can be easily transferred between remote sites. .