This report provides a comprehensive overview of Virtual Private Networks (VPNs), detailing their function in establishing secure connections across public networks. It categorizes VPNs into trusted, secure, and hybrid types, and explores various VPN topologies including remote access, intranet, and extranet configurations. The report outlines the advantages of VPNs, such as scalability and reduced costs, while also acknowledging disadvantages like performance issues and legal restrictions in some regions. It further describes the necessary components, including hardware, internet connections, and VPN software, and explains how VPNs operate using tunneling at layers 2 and 3 of the OSI model. Key components such as protocols, security measures, and appliances are discussed, with a focus on IP Security (IPSec) and Layer 2 Tunneling Protocol (L2TP). The benefits of VPNs, including extended connectivity and improved security, are also highlighted. The report concludes with a bibliography of relevant sources. This assignment is designed to meet the requirements of a network design assignment for small to medium enterprises (SMEs).