MikroTik - Setup and Configure L2TP IPSec VPN Server on MikroTik and Windows XP Client

Today we will learn how to configure VPN Server L2TP IPSec on MikroTik router and setup VPN client on Microsoft Windows XP for testing the VPN server.

MikroTik RouterOS is powerful Linux based OS and have lots of features
from firewall to Load balance and hotspot to VPN server. One of these is builtin radius server userman which serve as central user database and billing AAA server (Prepaid and postpaid) for all the service which support Radius client (NAS) even for remote NAS clients.

I assume that you are familiar with MikroTik with basic configuration and menus. So lets get to work.

MikroTik Part

1. Login to your MikroTik via winbox
2. Goto IP -> IP Pool and click + (plus)
3. On the new dialog of IP Pool Enter (in my case)
1. Name : L2TP-IP-pool1
2. Addresses : 172.16.20.2-172.16.8.254
3. OK
4. Goto IP -> Firewall -> NAT and click on + (plus) Enter following (in my case)
1. On General Tab 
1. Chain : srcnat
2. Src Address : 172.16.20.0/24
2. On Action tab
1. Action : masquerade 
3. Click OK
5. Goto IP -> IPSec -> peers and click + (plus) and enter following (in my case)
1. Secret : 1234
2. Exchange Mode : main l2tp
3. Check Send initial contact
4. My ID : auto
5. Proposal Check : obey
6. Hash Algorithm : sha1
7. Encryption Algorithm : 3des, aes128
8. D/H Group : modp 1024
9. Generate Policy : port override
10. Click OK
6. Now Click on Proposal tab on IPSec windows and open the default
7. Check sha1, 3des, aes128 cbc, aes256 cbc and PFS Group : none and Click OK
8. Now goto PPP and Click L2TP server button and Check enable, Use IPSec and enter IPSec Secret : 1234 and Click OK
9. Now Goto Profiles tab on PPP and click + (plus) and enter following (in my case)
1. Name : L2TP-IPSec-profile1
2. Local Address : 172.16.20.1
3. Remote Address : L2TP-IP-Pool1
4. Click on Proposal tab and Check Required
5. Click OK
10. Now Goto Secret tab and Click + (plus) and enter following on New PPP Secret
1. Name : l2tp
2. Password : l2tp
3. Service : l2tp
4. Profile : L2TP-IPSec-profile1
5. Click OK
11. That's all for MikroTik

Now comes the Microsoft Windows XP Part

1. Login to your Windows XP Machine (in my case) 
2. Goto My Network Properties
3. Click Create New Connection to open New connection Wizard
4. Click Next
5. Select Connect to the network at my workplace and click Next
6. Select Virtual Private Network Connection and click Next
7. Company Name enter anything L2TP VPN Connection in my case and Click Next
8. Enter the Host Name or IP address 10.0.0.1 (in my case Gateway) and Click Next
9. Click Finish
10. Now open the created Connection and enter the Username/ Password l2tp/l2tp (in my case)
11. Click Properties - > Security tab and Click IPSec settings...
12. and Enter the Key 1234 and Click OK
13. Click on Networking Tab and Select Type of VPN as L2TP IPSec VPN and Click OK
14. Now Click Connect
15. You shall connect to the L2TP VPN Server
16. You can use userman Radius Server for userman and Password
17. All done, 

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