nerdexam
Cisco

350-401 · Question #1237

Lab Simulation 19 Guidelines This is a lab item in which tasks will be performed on virtual devices. - Refer to the Tasks tab to view the tasks for this lab item. - Refer to the Topology tab to access

Lab Simulation 19 - Finance VRF Extension via GRE Tunnel Overall Goal This lab extends a VRF (Virtual Routing and Forwarding) instance called FINANCE across two routers (R11 and R22) using a GRE tunnel. The objective is traffic isolation: packets between VLAN 111 (on R11's side)

Submitted by emma.c· Mar 6, 2026Infrastructure

Question

Lab Simulation 19 Guidelines This is a lab item in which tasks will be performed on virtual devices. - Refer to the Tasks tab to view the tasks for this lab item. - Refer to the Topology tab to access the device console(s) and perform the tasks. - Console access is available for all required devices by clicking the device icon or using the tab(s) above the console window. - All necessary preconfigurations have been applied. - Do not change the enable password or hostname for any device. - Save your configurations to NVRAM before moving to the next item. - Click Next at the bottom of the screen to submit this lab and move to the next question. - When Next is clicked, the lab closes and cannot be reopened. Topology Tasks Answer: R22: int tun0 vrf forwarding FINANCE ip add 10.10.10.2 255.255.255.0 tunn source e0/0 tunnel dest 209.165.200.230 no shut ip route vrf FINANCE 10.10.111.0 255.255.255.0 tunn0 int et0/1 vrf forwarding FINANCE ip address 10.22.22.1 255.255.255.252 wr Verification:

Exhibits

350-401 question #1237 exhibit 1
350-401 question #1237 exhibit 2
350-401 question #1237 exhibit 3
350-401 question #1237 exhibit 4

Explanation

Lab Simulation 19 - Finance VRF Extension via GRE Tunnel

Overall Goal

This lab extends a VRF (Virtual Routing and Forwarding) instance called FINANCE across two routers (R11 and R22) using a GRE tunnel. The objective is traffic isolation: packets between VLAN 111 (on R11's side) and VLAN 222 (on R22's side) must stay within the FINANCE VRF and travel exclusively through the tunnel - never leaking into the global routing table.

Why this approach? VRFs create separate routing tables on a single router, enabling network segmentation. Without a tunnel, two physically separate VRF instances cannot communicate over a shared WAN link without route leaking or MPLS. A GRE tunnel bridging the two VRFs solves this cleanly.


Step-by-Step Breakdown

Step 1 - int tun0

Enters configuration mode for Tunnel interface 0. Tunnel interfaces are logical (virtual) - they don't map to physical hardware. This is where the GRE encapsulation will be configured.

If skipped: You can't configure the tunnel at all.


Step 2 - vrf forwarding FINANCE

Assigns Tunnel 0 to the FINANCE VRF, placing it in that VRF's routing table rather than the global table.

Critical ordering rule: This command wipes any IP address already configured on the interface. You MUST apply VRF membership before assigning an IP address. Doing it after step 3 would clear the address and require re-entry.

If skipped: The tunnel would exist in the global routing table, causing Finance traffic to mix with other traffic - defeating the entire purpose of the VRF.


Step 3 - ip add 10.10.10.10 255.255.255.0 (answer key uses 10.10.10.2)

Assigns an IP address to the tunnel interface. This is the tunnel's logical endpoint IP - it's what routing protocols or static routes use to reference this side of the tunnel.

Note: The answer key shows 10.10.10.2 while the procedure shows 10.10.10.10. On a real exam, use whatever matches the topology diagram. R11 likely holds .1, making R22's address .2 the correct answer.

If skipped: The tunnel has no IP, so no routing can use it as a next-hop.


Step 4 - tunnel source e0/0

Tells the router which physical interface provides the source IP for GRE-encapsulated packets. The public IP of e0/0 becomes the outer source IP in the GRE header.

If skipped: The tunnel has no origin, so it stays down (%Tunnel... down).


Step 5 - tunnel destination 209.165.200.230

Sets the remote endpoint of the tunnel - R11's public-facing IP. GRE packets are sent to this address.

If skipped: The tunnel doesn't know where to send packets; it remains non-functional. Both source and destination are required to bring a GRE tunnel up.


Step 6 - no shutdown

Administratively enables the tunnel interface. Tunnel interfaces default to shutdown state on some IOS versions, or may be down pending source/destination config.

If skipped: The tunnel is configured but stays administratively down - no traffic passes.


Step 7 - ip route vrf FINANCE 10.10.111.0 255.255.255.0 tunnel0

Installs a VRF-scoped static route inside the FINANCE routing table. It tells R22: "To reach VLAN 111's subnet (10.10.111.0/24), send traffic out tunnel0."

Note: The procedure lists this as intricate vrf FINANCE ... - that's a typo. The correct command is ip route vrf FINANCE.

If skipped: R22 has no path to VLAN 111. Traffic from VLAN 222 destined for VLAN 111 would be dropped (no route in the FINANCE table).

Why VRF-scoped? A plain ip route adds the route to the global table, not the FINANCE table - traffic would escape the VRF.


Step 8 - int et0/1

Enters configuration mode for Ethernet 0/1 - the local interface connecting R22 to the VLAN 222 segment.


Step 9 - vrf forwarding FINANCE

Assigns et0/1 to the FINANCE VRF. This is the LAN-facing interface; VLAN 222 hosts need to reach resources through the Finance VRF.

Same ordering rule as Step 2: Apply VRF membership before the IP address. This command will clear any existing IP address on the interface.

If skipped: The interface is in the global table. VLAN 222 traffic would route globally, not through the Finance VRF.


Step 10 - ip address 10.22.22.1 255.255.255.252

Assigns the IP address to et0/1 within the FINANCE VRF. The /30 (255.255.255.252) is a point-to-point subnet - typical for router-to-switch uplinks.

If skipped: No IP connectivity for devices on the VLAN 222 side.


Step 11 - wr (write memory)

Saves the running configuration to NVRAM (startup-config). Without this, all configuration is lost on reload.

Exam rule: Labs typically require saving before moving to the next question. Missing this = losing all your work.


What Happens If Steps Are Out of Order

MistakeConsequence
IP address before vrf forwardingVRF assignment clears the IP - must re-enter
tunnel source/dest before interface modeCommands rejected (not in interface context)
Static route before tunnel is upRoute may install but traffic black-holes until tunnel comes up
Skipping no shutTunnel stays down; route exists but is unusable

Memory Tip

Think of it in three phases:

  1. Build the pipe - int tun0 -> assign VRF -> assign IP -> set source/dest -> enable (no shut)
  2. Route the traffic - ip route vrf FINANCE pointing the target subnet into the tunnel
  3. Connect the LAN - int et0/1 -> assign VRF -> assign IP
  4. Save - always wr last

The VRF-before-IP rule applies to every interface in both phases. Treat VRF assignment like putting on a label before writing the address - label first, address second.

Topics

#VRF#GRE Tunneling#Static Routing#IP Addressing

Community Discussion

No community discussion yet for this question.

Full 350-401 Practice