Overlay Tunnels for IPv6
Overlay tunneling encapsulates IPv6 packets in IPv4 packets for delivery across an IPv4 infrastructure (a core network or the figure below). By using overlay tunnels, you can communicate with isolated IPv6 networks without upgrading the IPv4 infrastructure between them. Overlay tunnels can be configured between border devices or between a border device and a host; however, both tunnel endpoints must support both the IPv4 and IPv6 protocol stacks.

![]() Note |
Overlay tunnels reduce the maximum transmission unit (MTU) of an interface by 20 octets (assuming that the basic IPv4 packet header does not contain optional fields). A network that uses overlay tunnels is difficult to troubleshoot. Therefore, overlay tunnels that connect isolated IPv6 networks should not be considered a final IPv6 network architecture. The use of overlay tunnels should be considered as a transition technique toward a network that supports both the IPv4 and IPv6 protocol stacks or just the IPv6 protocol stack. |
IPv6 supports GRE type of overlay tunneling. IPv6 over IPv4 GRE Tunnels can carry IPv6, Connectionless Network Service (CLNS), and many other types of packets.