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Configure MPLS VPNv4 Routes on Cisco IOS Step-by-Step

MPLS Backbone Configuration Overview

This step-by-step guide covers MPLS VPNv4 route configuration on a Cisco IOS backbone, focusing on PE and P routers. The setup excludes PE-CE interaction for this part.

Network Topology

The guide configures four core routers: PE1, P1, P2, and PE2. Customer site networks will be exchanged across the MPLS backbone using VPNv4 routes.

Step 1: Underlay Network Configuration

IP Addressing and Loopback Interfaces

  • PE1: Loopback0: 1.1.1.1/32
  • P1, P2, PE2: Configure loopback and physical interfaces with unique /32 and /30 addresses
  • Assign IPs to core-facing interfaces (e.g., GigabitEthernet0/2)

OSPF Configuration

  • Enable OSPF on all PE and P router interfaces except customer-facing ones
  • Advertise loopback and core-facing networks
  • Set customer-facing interfaces as passive (best practice to avoid unnecessary adjacencies)

Key rule: OSPF must advertise loopbacks for LDP adjacencies. For more background on the roles these devices play, review MPLS Labels, Device Roles & LDP Protocol Explained Simply.

Step 2: Enable MPLS and LDP

  • Use mpls ip on every non-customer-facing interface
  • For P routers: all physical interfaces
  • For PE routers: only core-facing interfaces

Step 3: VRF, Route Distinguisher (RD), and Route Target (RT)

Create VRF and Assign RD/RT

ip vrf GREEN
 rd 100:1
 route-target both 100:1
  • RD (100:1): Creates unique VPNv4 prefix (ASN:NN or IP:NN format)
  • RT: Controls import/export of routes to/from MP-BGP
  • Use same RT on both PEs for consistent customer identification

Apply VRF to Customer-Facing Interface

interface GigabitEthernet0/1
 ip vrf forwarding GREEN
 ip address 192.168.1.1 255.255.255.0

Assigning VRF removes existing IP, re-apply it.

For more detail on how VRFs work and why they are essential, see VRF in MPLS Networks: Virtual Routing and Forwarding Explained Simply.

Step 4: Multi-Protocol iBGP for VPNv4

Configure iBGP Peering

router bgp 100
 neighbor 4.4.4.4 remote-as 100
 neighbor 4.4.4.4 update-source Loopback0
 !
 address-family vpnv4
  neighbor 4.4.4.4 activate
  • address-family vpnv4 enables VPNv4 unicast exchange
  • send-community extended is auto-added (required for RT sharing)

To understand how Route Distinguishers and Route Targets fit into the broader VPNv4 picture, refer to MPLS VPNs: RD, RT & VPNv4 Routes Explained Simply.

PE2 Configuration

Mirror PE1 config: peer with 1.1.1.1, activate VPNv4 address family.

Next Steps

  • Remaining: Configure customer CE routers, verify VPNv4 route exchange, label switching operation. Stay tuned!{

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