The present technology pertains to a group-based network policy using Segment Routing over an IPv6 dataplane (SRv6). After a source application sends a packet, an ingress node can receive the packet, and if the source node is capable, it can identify an application policy and apply it. The ingress node indicates that the policy has been applied by including policy bits in the packet encapsulation. When the packet is received by the egress node, it can determine whether the policy was already applied, and if so, the packet is forward to the destination application. If the egress node determines that the policy has not be applied the destination application can apply the policy. Both the ingress node and egress nodes can learn of source application groups, destination application groups, and applicable policies through communication with aspects of the segment routing fabric.