A method for providing service plane encryption in IP/MPLS and GRE networks is disclosed. The method for providing service plane encryption in IP/MPLS and GRE networks includes receiving a first Security Parameter Index with associated first encryption key and associated first authentication key at a first network element supporting the first Service Distribution Point; receiving an instruction at the first network element to encrypt data entering the first Service Distribution point with the first encryption key; receiving an instruction at the first network element to associate a data communication service provided at the first network element to the first Service Distribution Point; providing an encryption label; and providing data associated with the first communication service to the first Service Distribution Point for transmission to the second Service Distribution Point. The method for providing service plane encryption in IP/MPLS and GRE networks provides encryption advantages over systems known in the art by providing capability for selectively encrypting services connected via a data tunnel.