Creating a pppoe server

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Steps Required to Setup Mikrotik RouterOS as an PPPoE Server

Step 1: Configuring IP Addresses of Interface connected to Local Ntework and WAN (ISP/Fiber/DSL) ether1 (Connected to WAN with ip= ether2 (connected to LAN with ip=

Step 2: Setting up MTR as a DNS Server.

Step 3: Setting up MTR as a DHCP Server.

Step 4: Creating IP-Pools for PPPoE Server use.

Step 5: Setting up PPPoE Server.

Step 6: Creating Profiles for PPPoE Server, that will use IP- Pools created earliest.

Step 7: Creating Profiles for PPPoE Server, that wlil use IP- Pools created earlier.

Step 8: Creating Default Route for Internet Traffic.


Installing Mikrotik RouterOS is quite simple, just download the latest version from and burn it on CD. its an ISO base image file, so you may be need NERO or any cd burning application. Boot from the CD and you will be prompted to choose options what to select, just makr tick on everything, and press 'i' to install it, WARNING !!! MTR installation will erase all prtitions on your Harddisk and format it. you dont have any partition selection option, so Better be carefull. It will only few minutes , and then it will restart. After booting the MTR OS, it will ask you to enter Admin id and pass. The first default id password is

id = admin pass = (No password, just hit ENTER)

Later on, you can change it by entring:


Now lets setup Basic Interface configuration:

You can see interface config by typing:

ip address print

Now we will first configure WAN ethernet:

ip address add address= broadcast= interface=ether1

Now we will configure LAN ethernet:

ip address add address= broadcast= interface=ether2

Now we will set Primary DNS so we can resolve internet addresses:

ip dns set primary-dns= allow-remote-requests=yes

(Note: Replace with your isp DNS server Ip.)

Now we will setup MTR as a DHCP Server which will handout ip's to LAN users so they can connect with the MTR to establish PPPoE connection:

ip pool add name=DHCP ranges=
ip dhcp-server add name=DHCP-Main add-arp=yes disabled=no interface=ether2 address-pool=DHCP

Creating IP-Pools which PPPoE server will hand out to users when they establish PPPoE Connectivity with the Server:

ip pool add name=pppoe-pool ranges=

Setting up PPPoE Server:

interface pppoe-server server add interface=ether2 max-mtu=1488 max-mru=1488 keepalive-timeout=disabled one-session-per-host=yes max-sessions=0 default-profile=default authentication=pap disabled=no

Creating profiles for PPPoE Server, that will use ip-pools created earlier:

ppp profile add name=pppoe-profile local-address= remote-address=pppoe-pool dns-server= rate-limit=128k/128k

Creating Firewall/Masquerade rules to allow PPPoE client to access Internet:

ip firewall nat add chain=srcnat src-address-list= action=masquerade

Setting Default Route for internet Traffic:

ip route add dst-address= gateway=

Now create a test user which will use the profile created earlier.

ppp secret add name=test password=test profile=pppoe-profile

PPPoE Server Setup Done :), now test it on any winXP machine by creating a PPPoE Dialer.

[Note: MTR PPPoE Server , Text format howto derived from Mr.Mudassir's [ PPPoE CBT from ]

PPPoE Client Dialer:

Create a PPPoE client connection:

You can install the PPPoE client just like you install any other dial-up networking connection. To create a PPPoE client connection, follow these steps:

1. Click Start, click Control Panel, and then double-click Network and Internet Connections.

2. Click Network Connections, and then click Create a new connection in the Network Tasks pane.

3. After the Network Connection Wizard starts, click Next.

4. Click Connect to the Internet, and then click Next.

5. Click Set up my connection manually, and then click Next.

6. Click either Connect using a broadband connection that requires a user name and password or Connect using a broadband connection that is always on.

7. Type the Internet service provider (ISP) name that your ISP provided, and then click Next.

8. Type the user name that the ISP provided.

9. Type the password that the ISP provided.

10. Type the password one more time to confirm it, and then click Next.

11. Click Add a shortcut to this connection to my desktop.

12. Click Finish to complete the wizard.