A method for policy-based traffic encounter assessment to detect and avoid traffic includes determining, by a processor, an ownship predicted trajectory of an aircraft. The aircraft is the ownship. The method also includes determining a traffic predicted trajectory of one or more other aircraft in the vicinity of the ownship. The one or more other aircraft includes traffic. The method also includes assessing an encounter between the ownship and the traffic, wherein assessing the encounter between the ownship and the traffic includes applying an encounter assessment policy to the traffic predicted trajectory and the ownship predicted trajectory. The method further includes generating encounter assessment data in response to assessing the encounter between the ownship and the traffic. The encounter assessment data is used to at least detect and avoid the traffic by the ownship.