diff --git a/src/main/java/org/onosproject/segmentrouting/TunnelPolicy.java b/src/main/java/org/onosproject/segmentrouting/TunnelPolicy.java
new file mode 100644
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+++ b/src/main/java/org/onosproject/segmentrouting/TunnelPolicy.java
@@ -0,0 +1,244 @@
+/*
+ * Copyright 2015 Open Networking Laboratory
+ *
+ * Licensed under the Apache License, Version 2.0 (the "License");
+ * you may not use this file except in compliance with the License.
+ * You may obtain a copy of the License at
+ *
+ *     http://www.apache.org/licenses/LICENSE-2.0
+ *
+ * Unless required by applicable law or agreed to in writing, software
+ * distributed under the License is distributed on an "AS IS" BASIS,
+ * WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+ * See the License for the specific language governing permissions and
+ * limitations under the License.
+ */
+
+package org.onosproject.segmentrouting;
+
+import org.onosproject.net.flow.TrafficSelector;
+import org.onosproject.net.flowobjective.DefaultForwardingObjective;
+import org.onosproject.net.flowobjective.ForwardingObjective;
+
+import static com.google.common.base.Preconditions.checkNotNull;
+
+/**
+ * Tunnel Policy.
+ */
+public final class TunnelPolicy implements Policy {
+
+    private final SegmentRoutingManager srManager;
+    private final Type type;
+    private final String id;
+    private final TrafficSelector selector;
+    private final int priority;
+    private final String tunnelId;
+
+    private TunnelPolicy(SegmentRoutingManager srm, String policyId, Type type,
+                         TrafficSelector selector, int priority, String tunnelId) {
+        this.srManager = srm;
+        this.id = checkNotNull(policyId);
+        this.type = type;
+        this.tunnelId = tunnelId;
+        this.priority = priority;
+        this.selector = selector;
+    }
+
+    /**
+     * Creates a TunnelPolicy reference.
+     *
+     * @param p TunnelPolicy reference
+     */
+    public TunnelPolicy(TunnelPolicy p) {
+        this.srManager = p.srManager;
+        this.id = p.id;
+        this.type = p.type;
+        this.tunnelId = p.tunnelId;
+        this.priority = p.priority;
+        this.selector = p.selector;
+    }
+
+    /**
+     * Creates a TunnelPolicy reference.
+     *
+     * @param p TunnelPolicy reference
+     */
+    public TunnelPolicy(SegmentRoutingManager srm, TunnelPolicy p) {
+        this.srManager = srm;
+        this.id = p.id;
+        this.type = p.type;
+        this.tunnelId = p.tunnelId;
+        this.priority = p.priority;
+        this.selector = p.selector;
+    }
+
+    /**
+     * Returns the TunnelPolicy builder reference.
+     *
+     * @return TunnelPolicy builder
+     */
+    public static TunnelPolicy.Builder builder() {
+        return new Builder();
+    }
+
+    @Override
+    public String id() {
+        return this.id;
+    }
+
+    @Override
+    public TrafficSelector selector() {
+        return selector;
+    }
+
+    @Override
+    public int priority() {
+        return priority;
+    }
+
+    @Override
+    public Type type() {
+        return type;
+    }
+
+    @Override
+    public boolean create() {
+
+        Tunnel tunnel = srManager.getTunnel(tunnelId);
+
+        ForwardingObjective.Builder fwdBuilder = DefaultForwardingObjective
+                .builder()
+                .fromApp(srManager.appId)
+                .makePermanent()
+                .nextStep(tunnel.groupId())
+                .withPriority(priority)
+                .withSelector(selector)
+                .withFlag(ForwardingObjective.Flag.VERSATILE);
+
+        srManager.flowObjectiveService.forward(tunnel.source(), fwdBuilder.add());
+
+        return true;
+    }
+
+    @Override
+    public boolean remove() {
+
+        Tunnel tunnel = srManager.getTunnel(tunnelId);
+
+        ForwardingObjective.Builder fwdBuilder = DefaultForwardingObjective
+                .builder()
+                .fromApp(srManager.appId)
+                .makePermanent()
+                .withSelector(selector)
+                .withPriority(priority)
+                .nextStep(tunnel.groupId())
+                .withFlag(ForwardingObjective.Flag.VERSATILE);
+
+        srManager.flowObjectiveService.forward(tunnel.source(), fwdBuilder.remove());
+
+        return true;
+    }
+
+    /**
+     * Returns the tunnel ID of the policy.
+     *
+     * @return Tunnel ID
+     */
+    public String tunnelId() {
+        return this.tunnelId;
+    }
+
+    /**
+     * Tunnel Policy Builder.
+     */
+    public static final class Builder {
+
+        private SegmentRoutingManager srManager;
+        private String id;
+        private Type type;
+        private TrafficSelector selector;
+        private int priority;
+        private String tunnelId;
+
+        /**
+         * Sets the policy Id.
+         *
+         * @param id policy Id
+         * @return Builder object
+         */
+        public Builder setPolicyId(String id) {
+            this.id = id;
+
+            return this;
+        }
+
+        /**
+         * Sets the policy type.
+         *
+         * @param type policy type
+         * @return Builder object
+         */
+        public Builder setType(Type type) {
+            this.type = type;
+
+            return this;
+        }
+
+        /**
+         * Sets the TrafficSelector.
+         *
+         * @param selector TrafficSelector
+         * @return Builder object
+         */
+        public Builder setSelector(TrafficSelector selector) {
+            this.selector = selector;
+
+            return this;
+        }
+
+        /**
+         * Sets the priority of the policy.
+         *
+         * @param p priority
+         * @return Builder object
+         */
+        public Builder setPriority(int p) {
+            this.priority = p;
+
+            return this;
+        }
+
+        /**
+         * Sets the tunnel Id.
+         *
+         * @param tunnelId tunnel Id
+         * @return Builder object
+         */
+        public Builder setTunnelId(String tunnelId) {
+            this.tunnelId = tunnelId;
+
+            return this;
+        }
+
+        /**
+         * Sets the Segment Routing Manager reference.
+         *
+         * @param srm Segment Routing Manager reference
+         * @return Builder object
+         */
+        public Builder setManager(SegmentRoutingManager srm) {
+            this.srManager = srm;
+
+            return this;
+        }
+
+        /**
+         * Builds the policy.
+         *
+         * @return Tunnel Policy reference
+         */
+        public Policy build() {
+            return new TunnelPolicy(srManager, id, type, selector, priority, tunnelId);
+        }
+    }
+}