A method for performing policy-based configuration of Internet Protocol Security (IPSec) for a Virtual Private Network (VPN) is provided. According to one embodiment, a policy page through which a policy, including multiple VPN settings for establishing a VPN connection, may be viewed and configured is displayed via a user interface of a source network device. The VPN settings include a type of IPSec tunnel to be established between the source network device and a peer network device. A selection regarding the type of IPSec tunnel to be used for the VPN connection is received via the user interface. The source network device requests the VPN connection be established between the source network device and the peer network device in accordance with the policy by sending a notification request to the peer network device. The notification requests includes parameter values associated with the VPN settings.