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 network device displays a policy page via a user interface of the network device through which a policy, including multiple VPN settings for establishing the VPN connection, is viewed and configured, the VPN settings including a type of IPSec tunnel to be established between the network device and a peer network device. The network device receives via the user interface, a selection regarding the type of IPSec tunnel to be used for the VPN connection. The network device sends a notification request, including parameter values associated with the VPN settings, to the peer network device.