The embodiment of the invention provides a virtual private network VPN fault processing method and a network provider boundary routing equipment PE which detects whether the own remote VPN routing number thereof meets the pre-set requirements; when the remote VPN routing number of PE does not meet the pre-set requirements, the PE makes use of the fault processing information to carry out the fault processing, and the fault elimination notice is carried out by making use of the fault processing information till the remote VPN routing number of PE meets the pre-set requirements. The applicationof the scheme of the embodiment of the invention is that the remote VPN routing number of PE is linked with the fault processing information, only the VPN routing number of PE meets the pre-set requirement, the CE which pertains to PE is allowed to forward the traffic to PE, so the invention can solve the business interruption problem which is caused by that CE does not forward the traffic to PE when PE has no remote VPU routing.