Abstract: A method and system for testing a Layer 2 tunnel in a data communication network including a network device and a network manager are described. According to the method, a test invocation is received from the network manager at the network device. In response to receipt of the test invocation at the network device, a Layer 2 tunnel within the data communication network is tested, and a result of the test is reported to the network manager. The tests that may be conducted include a connectivity test to determine if a Layer 2 tunnel can be established and a responsiveness test to determine the propagation time of a Layer 2 tunnel. Advantageously, both compulsory and voluntary Layer-2 tunnels can be tested, thereby enabling all Layer 2 protocols (e.g., L2TP, L2F, and PPTP) to be supported.